IDEAS home Printed from https://ideas.repec.org/a/pal/ijodag/v13y2016i2d10.1057_jdg.2015.11.html
   My bibliography  Save this article

Usefulness of corporate annual reports to individual investors in Bangladesh

Author

Listed:
  • Pallab Kumar Biswas

    (School of Accounting & Finance, The University of the South Pacific)

  • Swapan Kumar Bala

Abstract

The purpose of this article is to examine Bangladeshi individual investors’ use of corporate annual reports and their perceptions of 18 annual report sections. The data reported in this study were collected through a questionnaire survey. The 316 responses received were analysed using descriptive statistics, the ANOVA test statistics, the χ2 statistics, and the Student–Newman–Keuls multiple range test. The study reveals that just over one-third of the respondents regularly read annual reports of the companies in which they have investment. Trading frequency is not significant in affecting the readership behaviour of individual investors. Among the 18 annual report sections, traditional financial statements, namely the income statement, the balance sheet and the cash flow statement were the most read and important sections using both the rating and ranking assessment methods. Corporate environmental report, essay and pictorial on operations are the least read and the least important sections. Lack of time, lack of usefulness and lack of interest were attributable to individual investors’ lack of readership of corporate annual report sections in Bangladesh.

Suggested Citation

  • Pallab Kumar Biswas & Swapan Kumar Bala, 2016. "Usefulness of corporate annual reports to individual investors in Bangladesh," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 13(2), pages 97-116, May.
    • Handle: RePEc:pal:ijodag:v:13:y:2016:i:2:d:10.1057_jdg.2015.11
    DOI: 10.1057/jdg.2015.11
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/jdg.2015.11
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/jdg.2015.11?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lucia S Chang & Kenneth S Most & Carlos W Brain, 1983. "The Utility of Annual Reports: An International Study," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 14(1), pages 63-84, March.
    2. Ruud Vergoossen, 1993. "The use and perceived importance of annual reports by investment analysts in the Netherlands," European Accounting Review, Taylor & Francis Journals, vol. 2(2), pages 219-244.
    3. Shahzad Uddin & Jamal Choudhury, 2008. "Rationality, traditionalism and the state of corporate governance mechanisms," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 21(7), pages 1026-1051, September.
    4. Jasim Al-Ajmi, 2009. "Investors' use of corporate reports in Bahrain," Managerial Auditing Journal, Emerald Group Publishing, vol. 24(3), pages 266-289, March.
    5. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer;The Psychometric Society, vol. 16(3), pages 297-334, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vismaya Gangadharan & Lakshmi Padmakumari, 2024. "Fogging the firm performance: an empirical examination of the annual report readability in India," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 21(2), pages 211-226, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stolowy, Hervé & Jeanjean, Thomas & Erkens, Michael, 2011. "The economic consequences of increasing the international visibility of financial reports," HEC Research Papers Series 957, HEC Paris.
    2. Gaétan Breton & Alain Schatt, 2000. "Rôle et caractérisation de l’analyse financière," Revue d'Économie Financière, Programme National Persée, vol. 59(4), pages 147-161.
    3. Showkat Ahmad Busru & G. Shanmugasundaram & Shariq Ahmad Bhat, 2020. "Corporate Governance an Imperative for Stakeholders Protection: Evidence from Risk Management of Indian Listed Firms," Business Perspectives and Research, , vol. 8(2), pages 89-116, July.
    4. Sylvain Durocher, 2009. "The future of interpretive accounting research," Qualitative Research in Accounting & Management, Emerald Group Publishing Limited, vol. 6(3), pages 137-159, July.
    5. Jeanjean, Thomas & Lesage, Cédric & Stolowy, Hervé, 2010. "Why do you speak English (in your annual report)?," The International Journal of Accounting, Elsevier, vol. 45(2), pages 200-223, June.
    6. Muttakin, Mohammad Badrul & Khan, Arifur & Belal, Ataur Rahman, 2015. "Intellectual capital disclosures and corporate governance: An empirical examination," Advances in accounting, Elsevier, vol. 31(2), pages 219-227.
    7. Hellman, Niclas, 2002. "Information use in institutional investor organizations," SSE/EFI Working Paper Series in Business Administration 2002:19, Stockholm School of Economics.
    8. Mohammad Badrul Muttakin & Arifur Khan & Dessalegn Getie Mihret, 2018. "The Effect of Board Capital and CEO Power on Corporate Social Responsibility Disclosures," Journal of Business Ethics, Springer, vol. 150(1), pages 41-56, June.
    9. Muttakin, Mohammad Badrul & Khan, Arifur, 2014. "Determinants of corporate social disclosure: Empirical evidence from Bangladesh," Advances in accounting, Elsevier, vol. 30(1), pages 168-175.
    10. Thomas Jeanjean & Hervé Stolowy & Michael Erkens, 2012. "Economic consequences of adopting English for annual reports," Post-Print hal-00690931, HAL.
    11. Thomas Jeanjean & Hervé Stolowy & Michael Erkens, 2010. "Really “Lost in translation”? The economic consequences of issuing an annual report in English," Post-Print hal-00479511, HAL.
    12. Francisco Liébana-Cabanillas & Nidhi Singh & Zoran Kalinic & Elena Carvajal-Trujillo, 2021. "Examining the determinants of continuance intention to use and the moderating effect of the gender and age of users of NFC mobile payments: a multi-analytical approach," Information Technology and Management, Springer, vol. 22(2), pages 133-161, June.
    13. Yoon, Junghyun & Lee, Hee Yong & Dinwoodie, John, 2015. "Competitiveness of container terminal operating companies in South Korea and the industry–university–government network," Transportation Research Part A: Policy and Practice, Elsevier, vol. 80(C), pages 1-14.
    14. Md. Mominur Rahman & Bilkis Akhter, 2021. "The impact of investment in human capital on bank performance: evidence from Bangladesh," Future Business Journal, Springer, vol. 7(1), pages 1-13, December.
    15. Usunier, Jean-Claude, 1998. "Oral pleasure and expatriate satisfaction: an empirical approach," International Business Review, Elsevier, vol. 7(1), pages 89-110, February.
    16. Abdul Kadar Muhammad Masum & Md Abul Kalam Azad & Loo-See Beh, 2015. "Determinants of Academics' Job Satisfaction: Empirical Evidence from Private Universities in Bangladesh," PLOS ONE, Public Library of Science, vol. 10(2), pages 1-15, February.
    17. Amolo Elvis Juma Amolo & Charles Mallans Rambo & Charles Misiko Wafula, 2024. "Hedging Derivatives and Performance of Renewable Energy Projects in Kenya," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 11(8), pages 619-630, August.
    18. Sharma, Vivek & Bhat, Dada Ab Rouf, 2020. "An empirical study exploring the relationship among human capital innovation, service innovation, competitive advantage and employee productivity in hospitality services," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 9(2), pages 1-14..
    19. Deepak, 2016. "Antecedent Value of Professional Commitment and Job Involvement in Determining Job Satisfaction," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 41(2), pages 154-164, May.
    20. Abernethy, Margaret A. & Vagnoni, Emidia, 2004. "Power, organization design and managerial behaviour," Accounting, Organizations and Society, Elsevier, vol. 29(3-4), pages 207-225.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:ijodag:v:13:y:2016:i:2:d:10.1057_jdg.2015.11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.