Ex-military CEOs and readability of financial reports

IF 2.2 3区管理学 Q2 BUSINESS, FINANCE

Journal of Business Finance & Accounting Pub Date : 2023-09-13 DOI:10.1111/jbfa.12743

Anand Jha, Humnath Panta, Salil K. Sarkar

引用次数: 0

Abstract

In this study, we examine the effect of ex-military Chief Executive Officers (CEO)s on the readability of 10-Ks. Using the Bog Index as a measure of readability, we find that firms run by ex-military CEOs have much more readable financial reports, mainly because of the words used in these financial reports. Ex-military CEOs also have a moderating effect—we find that their leadership lessens the adverse effects of loss and business complexity on the 10-K's readability. These results are consistent with the view that ex-military CEOs resist the temptation to obfuscate negative news and may communicate complexity in operations more clearly. Overall, our findings indicate a possible behavioral explanation for why some firms have more readable annual reports.

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前军事首席执行官与财务报告的可读性

在本研究中，我们探讨了退役首席执行官对 10-K 可读性的影响。使用博格指数（Bog Index）作为衡量可读性的标准，我们发现由退役军人首席执行官管理的公司的财务报告可读性要高得多，这主要是因为这些财务报告中使用的词语。退役军人首席执行官还具有调节作用--我们发现，他们的领导力减轻了亏损和业务复杂性对 10-K 可读性的不利影响。这些结果与前军方首席执行官能够抵制掩盖负面消息的诱惑，并能更清晰地传达业务复杂性的观点是一致的。总之，我们的研究结果表明，我们可以从行为上解释为什么有些公司的年度报告更具可读性。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Business Finance & Accounting BUSINESS, FINANCE-

CiteScore

4.40

自引率

17.20%

发文量

期刊介绍： Journal of Business Finance and Accounting exists to publish high quality research papers in accounting, corporate finance, corporate governance and their interfaces. The interfaces are relevant in many areas such as financial reporting and communication, valuation, financial performance measurement and managerial reward and control structures. A feature of JBFA is that it recognises that informational problems are pervasive in financial markets and business organisations, and that accounting plays an important role in resolving such problems. JBFA welcomes both theoretical and empirical contributions. Nonetheless, theoretical papers should yield novel testable implications, and empirical papers should be theoretically well-motivated. The Editors view accounting and finance as being closely related to economics and, as a consequence, papers submitted will often have theoretical motivations that are grounded in economics. JBFA, however, also seeks papers that complement economics-based theorising with theoretical developments originating in other social science disciplines or traditions. While many papers in JBFA use econometric or related empirical methods, the Editors also welcome contributions that use other empirical research methods. Although the scope of JBFA is broad, it is not a suitable outlet for highly abstract mathematical papers, or empirical papers with inadequate theoretical motivation. Also, papers that study asset pricing, or the operations of financial markets, should have direct implications for one or more of preparers, regulators, users of financial statements, and corporate financial decision makers, or at least should have implications for the development of future research relevant to such users.