How does readability influence investors' judgments? Consistency of benchmark performance matters

• Main Authors: Zhou, Bo, Tan, Hun-Tong, Wang, Elaine Ying
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2015
• Subjects: DRNTU::Business::Accounting
• Online Access: https://hdl.handle.net/10356/96782; http://hdl.handle.net/10220/25649
• Institution: Nanyang Technological University

We conduct two experiments to investigate how readability (high versus low) and benchmark performance consistency (consistent versus inconsistent) influence investors' judgments. Using prior management guidance and year-ago quarter performance as two benchmarks against which to assess actual ea...