The Effect of Firm Performance on Annual Report Readability

Syafira Ratna Sari, Arif Darmawan

2021

Abstract

This study aims to examine whether there is an effect of firm performance on the readability of the annual report and how the influence between these variables. This study uses a sample of companies with various industrial sectors listed on the IDX for 2017-2019 period. The number of samples used as many as 114 companies. The independent variable in this study is expressed by the company's performance using Tobin’s Q value and the dependent variable is expressed by the readability of the company's annual report using gunning fog index. This study also uses control variables that are proxied by the size and age of the company. The data processing in this study uses SPSS version 20. The results of the hypothesis indicate that the company's performance influences on the readability of the company's annual report. Companies with high performance get a high readability value of the annual report as well. This is due to the increasing size of the company's operations so that the company offers a more detailed explanation. The high age of the company does not affect the readability of the annual report. The conclusion of this study states that other factors have more influence on the readability of the annual report

Paper Citation

in Harvard Style

Ratna Sari S. and Darmawan A. (2021). The Effect of Firm Performance on Annual Report Readability. In Proceedings of the 3rd International Conference on Applied Economics and Social Science - Volume 1: ICAESS, ISBN 978-989-758-605-7, pages 132-139. DOI: 10.5220/0010862400003255

in Bibtex Style

@conference{icaess21,
author={Syafira Ratna Sari and Arif Darmawan},
title={The Effect of Firm Performance on Annual Report Readability},
booktitle={Proceedings of the 3rd International Conference on Applied Economics and Social Science - Volume 1: ICAESS,},
year={2021},
pages={132-139},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010862400003255},
isbn={978-989-758-605-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 3rd International Conference on Applied Economics and Social Science - Volume 1: ICAESS,
TI - The Effect of Firm Performance on Annual Report Readability
SN - 978-989-758-605-7
AU - Ratna Sari S.
AU - Darmawan A.
PY - 2021
SP - 132
EP - 139
DO - 10.5220/0010862400003255