Paper Corporate Language And Financial Performance
The obfuscation hypothesis suggests that under-performing firms will tend to obscure the meaning of their corporate narratives by deliberately adopting a textual complexity, most readily apparent through poor readability and the use of unnecessarily difficult language.
Largely because of measurement problems, most of the existing literature has used readability as a proxy for textual complexity, and sought to examine relationships between various measures of financial performance. This paper seeks to add to the literature in the area by comparing the textual complexity of corporate narratives of Main Board and Second Board companies on the Bursa Malaysia (formerly known as the Kuala Lumpur Stock Exchange), with their financial performance, and also examines the impact of company size, board membership and degree of statutory regulation on the readability of corporate narratives.
The findings suggest that there are significant relationships between corporate language and financial performance, but that these are not consistent with the obfuscation hypothesis; rather, they are consistent with the suggestion that increased regulation and statutory monitoring of disclosures are associated with improved readability of narrative. Deloitte’s Bullfighter Composite Index (BCI) is also employed in the study as a novel means of measuring the incidence of corporate jargon in narratives, but is shown to have no incremental explanatory power over and above that attributable to the more conventional Flesch Reading Ease index.
Download Contoh Makalah:
1. Corporate language and fin perf…pdf
Source : IIUM International Accounting Conference III (INTAC III),Islam and Accounting : towards enhancing accountability, governance and performance,26-28 june, Pan Pacific Hotel, Kuala Lumpur, Malaysia
Tags: accounting conference, bullfighter, bursa malaysia, contoh makalah, corporate jargon, corporate language, financial performance, hotel kuala lumpur, hotel kuala lumpur malaysia, intac, international accounting, kuala lumpur malaysia, kuala lumpur stock, kuala lumpur stock exchange, Makalah, measurement problems, pan pacific hotel, pan pacific hotel kuala lumpur, poor readability, statutory regulation, textual complexity
