Financial report readability and stock return synchronicity

• Main Authors: BAI, Xuelian, DONG, Yi, HU, Nan
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2019
• Subjects: Text mining; readability; stock return synchronicity; information asymmetry; Databases and Information Systems; Finance and Financial Management; Numerical Analysis and Scientific Computing; Portfolio and Security Analysis
• Online Access: https://ink.library.smu.edu.sg/sis_research/8044
• Institution: Singapore Management University

In this study, we investigate the impact of firm-specific information-processing cost, proxied by annual report readability, on investors' firm-specific information usage, proxied by firm stock return synchronicity. We expect that more readable financial reports would reduce firm-specific infor...