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Usefulness of corporate annual reports to individual investors in Bangladesh

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  • 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
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    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.
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    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.
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    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.

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