Cover Image

The communicative effectiveness of market risk disclosures in the annual report of financial firms: evidence from an understandability study

The study seeks evidence on the understandability of the textual narrative of market risk information by using the Cloze Procedure. Based on Bormuth’s 57 per cent cloze criterion reference point, the results show that the narrative is less understandable. Compared to other narrative from the same se...

Full description

Saved in:
Bibliographic Details
Main Authors: Sofri Yahya,, Peter, Casson
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 1999
Online Access:http://journalarticle.ukm.my/1734/1/922-1765-1-SM.pdf
http://journalarticle.ukm.my/1734/
http://www.ukm.my/penerbit/jurus.htm
Tags: Add Tag
No Tags, Be the first to tag this record!
id my-ukm.journal.1734
record_format eprints
spelling my-ukm.journal.17342016-12-14T06:30:06Z http://journalarticle.ukm.my/1734/ The communicative effectiveness of market risk disclosures in the annual report of financial firms: evidence from an understandability study Sofri Yahya, Peter, Casson The study seeks evidence on the understandability of the textual narrative of market risk information by using the Cloze Procedure. Based on Bormuth’s 57 per cent cloze criterion reference point, the results show that the narrative is less understandable. Compared to other narrative from the same section of Management Discussion and Analysis, the market risk narrative is more difficult to understand. The implication of these results is that market risk narrative is not accessible for unsophisticated readers. In addition, firms that have a higher level of derivatives activities are found to write market risk narrative is more difficult to understand. The implication of these results is that market risk narrative is not accessible for unsophisticated readers. In addition, firms that have a higher level of derivatives activities are found to write market risk narratives in a more understandable manner than less active ones. The management of these active financial firms therefore should be more careful about their communication effectiveness. This group of firms which is also big in terms of asset size is more likely to commit resources toward presenting an understandable and effective message to intended readers Penerbit Universiti Kebangsaan Malaysia 1999-07 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/1734/1/922-1765-1-SM.pdf Sofri Yahya, and Peter, Casson (1999) The communicative effectiveness of market risk disclosures in the annual report of financial firms: evidence from an understandability study. Jurnal Pengurusan, 18 . ISSN 0127-2713 http://www.ukm.my/penerbit/jurus.htm
institution Universiti Kebangsaan Malaysia
building Perpustakaan Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description The study seeks evidence on the understandability of the textual narrative of market risk information by using the Cloze Procedure. Based on Bormuth’s 57 per cent cloze criterion reference point, the results show that the narrative is less understandable. Compared to other narrative from the same section of Management Discussion and Analysis, the market risk narrative is more difficult to understand. The implication of these results is that market risk narrative is not accessible for unsophisticated readers. In addition, firms that have a higher level of derivatives activities are found to write market risk narrative is more difficult to understand. The implication of these results is that market risk narrative is not accessible for unsophisticated readers. In addition, firms that have a higher level of derivatives activities are found to write market risk narratives in a more understandable manner than less active ones. The management of these active financial firms therefore should be more careful about their communication effectiveness. This group of firms which is also big in terms of asset size is more likely to commit resources toward presenting an understandable and effective message to intended readers
format Article
author Sofri Yahya,
Peter, Casson
spellingShingle Sofri Yahya,
Peter, Casson
The communicative effectiveness of market risk disclosures in the annual report of financial firms: evidence from an understandability study
author_facet Sofri Yahya,
Peter, Casson
author_sort Sofri Yahya,
title The communicative effectiveness of market risk disclosures in the annual report of financial firms: evidence from an understandability study
title_short The communicative effectiveness of market risk disclosures in the annual report of financial firms: evidence from an understandability study
title_full The communicative effectiveness of market risk disclosures in the annual report of financial firms: evidence from an understandability study
title_fullStr The communicative effectiveness of market risk disclosures in the annual report of financial firms: evidence from an understandability study
title_full_unstemmed The communicative effectiveness of market risk disclosures in the annual report of financial firms: evidence from an understandability study
title_sort communicative effectiveness of market risk disclosures in the annual report of financial firms: evidence from an understandability study
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 1999
url http://journalarticle.ukm.my/1734/1/922-1765-1-SM.pdf
http://journalarticle.ukm.my/1734/
http://www.ukm.my/penerbit/jurus.htm
_version_ 1643735134364499968
score 13.211869

Similar Items