Annual report text information readability and financial restatement
Based on the theories of information disclosure and supervision and control,this study ex-amines the impact of the readability of annual report text on financial restatement.Research has found that the lower the readability of annual report text information,the higher the probability of financial restatement occurring,and this conclusion still holds after addressing endogenous issues and conducting a series of ro-bustness tests.From the results of the mechanism test,it can be seen that the improvement in the readability of annual report text information mainly reduces the probability of financial restatement behavior by sup-pressing management's earnings management behavior and alleviating company information asymmetry.Further research shows that restatement of accounting issues,significant accounting errors,fraud or scandals are more sensitive to the readability of annual report text information.The workload of auditors and the type of accounting firm they belong to will have a significant impact on the relationship between the readability of annual report information and significant accounting errors,fraudulent or scandalous restatement behavior.
annual report text informationreadabilityfinancial restatementearnings managementinformation asymmetryauditor characteristics
万方数据
维普
