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AuthorHassan, Mostafa Kamal
AuthorAbu Abbas, Bassam
AuthorGaras, Samy Nathan
Available date2022-09-29T06:47:45Z
Publication Date2018-10-10
Publication NameCorporate Governance: The International Journal of Business in Society.
Identifierhttp://dx.doi.org/10.1108/CG-05-2018-0182
CitationHassan, M.K., Abu Abbas, B. and Garas, S.N. (2019), "Readability, governance and performance: a test of the obfuscation hypothesis in Qatari listed firms", Corporate Governance, Vol. 19 No. 2, pp. 270-298.
ISSN1472-0701
URIhttps://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85054838949&origin=inward
URIhttp://hdl.handle.net/10576/34619
AbstractPurpose: This paper aims to examine the relationship between the readability of annual reports and corporate performance in Qatari listed firms while controlling for a firm’s competitive position, governance structure and specific features such as size, age and industry type. Design/methodology/approach: This study relies on both agency theory and legitimacy theory to develop testable hypotheses. It uses a sample of 126 firm-year listed companies in the Qatar Stock Exchange to test obfuscation in the annual reports through examining the association between the readability of Narrative Disclosures (NDs) and corporate profitability, financial risk and agency costs for the period from 2014-2016. Findings: The findings show that firms with higher annual report readability are more profitable and have lower agency costs, which is an indication of the existence of “obfuscation.” Qatari firms may use narrative complexity as a disclosure strategy to enhance their image and consequently maintain their social legitimacy. Research limitations/implications: Although the study findings suffer from limited global generalization, they can be generalized across Gulf Cooperation Council countries. Thus, future cross-country research is encouraged. Practical implications: The findings encourage Qatari policymakers to instate a policy for “Plain English” writing to make NDs easy to read by international investors. Originality/value: This study is one of very few studies that examines the readability of annual reports in emerging market economies, i.e. Qatar. The study contributes to the paucity of research that examines English-written annual reports in non-English speaking countries.
Languageen
PublisherEmerald Publishing Limited
SubjectAgency theory
Corporate performance
Legitimacy theory
Readability
TitleReadability, governance and performance: a test of the obfuscation hypothesis in Qatari listed firms
TypeArticle
Pagination270-298
Issue Number2
Volume Number19
dc.accessType Abstract Only


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