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Does IFRS and GRI adoption impact the understandability of corporate reports by Chinese listed companies?

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  • Yanqi Sun
  • Jenny Jing Wang
  • Kevin Tairan Huang

Abstract

This study examines whether the adoption of IFRS and GRI impacts the readability and conciseness of corporate reports. We investigate the corporate reports of the top 100 A‐share listed Chinese companies from 2014 to 2018. Our results suggest that both readability and conciseness of the corporate reports are at a low level and indicate a downward trend over our sample period. We also find that IFRS adoption results in a longer and more readable report, whereas GRI adoption leads to a longer but less readable report. Our findings are of interest to academics, management, investors, and regulators.

Suggested Citation

  • Yanqi Sun & Jenny Jing Wang & Kevin Tairan Huang, 2022. "Does IFRS and GRI adoption impact the understandability of corporate reports by Chinese listed companies?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(2), pages 2879-2904, June.
    • Handle: RePEc:bla:acctfi:v:62:y:2022:i:2:p:2879-2904
    DOI: 10.1111/acfi.12908
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    2. Fahd Alduais & Nashat Ali Almasria & Abeer Samara & Ali Masadeh, 2022. "Conciseness, Financial Disclosure, and Market Reaction: A Textual Analysis of Annual Reports in Listed Chinese Companies," IJFS, MDPI, vol. 10(4), pages 1-22, November.

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