A Comparative Study on Readability Levels of Annual Reports and Banks Performance

Abstract

Readability refers to the relative ease in which a written passage of text can be read and understood by others. Numerous mathematical formulas have been developed to support writers in computing the readability of their script. The research work is an initiative to test the relationship of readability levels of annual reports of banking sector with their performance figures. If disclosure readability is strategically used by managers to hide adverse information, a relationship between firm performance and readability would be expected.