Summary annual reports: length,readability and content |
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Authors: | Michael E. Bradbury Pei___Chi Kelly Hsiao Tom Scott |
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Affiliation: | 1. School of Accountancy, Massey University, Auckland, New Zealand;2. Graduate School of Management, University of Auckland, Auckland, New Zealand;3. Accounting Department, Auckland University of Technology, Auckland, New Zealand |
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Abstract: | This paper examines summary annual reports (SAR) as an alternative channel for communicating financial information. We use a sample of New Zealand local governments (councils) that are required to report audited SAR. Using various measures, we compare document length and readability of SAR and annual reports (AR). We find that SAR are approximately 10 percent of the AR length and both have a ___very difficult___ readability score. We then use a disclosure index to examine the relation between SAR report length and the level of disclosures. After controlling for other factors that impact the level of disclosure, we conclude that the reduction in SAR is driven by lower levels of content. We then discuss the policy implications of our findings. |
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Keywords: | Summary annual reports Concise reports Information load Readability Local government |
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