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Asset redeployability and readability of annual report

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  • Sun, Li

Abstract

We examine the impact of holding more redeployable assets on the readability of annual reports. Building on prior research, we develop two competing hypotheses. Using a large panel sample of 67,022 firm-year observations for the period of 1993–2018, we find that the annual reports of firms with more redeployable assets are easier to read and understand. We further obtain consistent results after performing a battery of robustness and endogeneity checks. Overall, our study joins the debate on whether holding more redeployable assets is beneficial or detrimental to a company and contributes to a more comprehensive understanding of asset redeployability.

Suggested Citation

  • Sun, Li, 2023. "Asset redeployability and readability of annual report," Research in International Business and Finance, Elsevier, vol. 64(C).
    • Handle: RePEc:eee:riibaf:v:64:y:2023:i:c:s027553192200229x
    DOI: 10.1016/j.ribaf.2022.101843
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    More about this item

    Keywords

    Asset redeployability; Annual reports readability; Reading difficulty;
    All these keywords.

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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