IDEAS home Printed from https://ideas.repec.org/a/taf/oaefxx/v11y2023i1p2186034.html
   My bibliography  Save this article

Annual report readability and stock return synchronicity: Evidence from India

Author

Listed:
  • Vismaya Gangadharan
  • Lakshmi Padmakumari

Abstract

This study investigates the relationship between the comprehensibility of a firm’s annual report and its stock return synchronicity in the Indian market. The study employs the readability of annual reports as a measure for the cost of information processing. The findings suggest that firms with more readable annual reports tend to display higher stock return synchronicity. This relationship implies that more legible financial disclosures are associated with more efficient and transparent capital markets. Additionally, the research discovered that the relationship between readability and stock return synchronicity is particularly pronounced for companies with high institutional investment, high analyst coverage, and lower information asymmetry. The sample size of the study encompasses NSE 500 companies for the period 2015–2016 to 2019–2020.

Suggested Citation

  • Vismaya Gangadharan & Lakshmi Padmakumari, 2023. "Annual report readability and stock return synchronicity: Evidence from India," Cogent Economics & Finance, Taylor & Francis Journals, vol. 11(1), pages 2186034-218, December.
    • Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2186034
    DOI: 10.1080/23322039.2023.2186034
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23322039.2023.2186034
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/23322039.2023.2186034?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.

    Citations

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


    Cited by:

    1. Zhenyu Jiang & Lingshan Hu & Zongjun Wang, 2024. "Better or worse? Revealing the impact of common institutional ownership on annual report readability," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-11, December.

    More about this item

    Statistics

    Access and download statistics

    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:taf:oaefxx:v:11:y:2023:i:1:p:2186034. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/OAEF20 .

    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.