Readability in the earnings releases of Brazilian Publicly-Held Companies

• Autor(a) principal: Mendes, Matheus Soares
• Data de Publicação: 2023
• Outros Autores: Lucena, Wenner Glaucio Lopes
• Tipo de documento: Artigo
• Idioma: por; eng
• Título da fonte: Contabilidade, Gestão e Governança
• Texto Completo: https://revistacgg.org/index.php/contabil/article/view/2918
• topic: Legibilidade; Índice Fog; IBrA; Determinantes; Readability; Fog Index; Capital Markets; IBrA; Determinants

Objective: Explore the determinants of readability in the earnings releases of publicly traded Brazilian companies. Method: The study was carried out in the entities belonging to the Brazil Broad-Based Index (IBrA) between 2010 and 2019, with quarterly documents. Financial and accounting data were collected in the Economática database, while company reports (releases) were collected manually on the companies' investor relations websites (IRs) for the entire analysis period. Readability was estimated using the Fog index and the extent of the reports, according to Li (2008). In addition, two econometric models were estimated on panel data with Fixed Effects. Originality/Relevance: In examining a report (release of results) until then, underexplored and that has its particularities, in addition to a broad and quarterly sample, this work differs from the previous ones. Results: In general, the research indicated that companies with a high market-to-book ratio, older and known by the market, smaller concerning their market value, with greater shareholding concentration, in addition to low fluctuations in their quarterly earnings, issue reports that are more readable and less complex. Theoretical/Methodological contributions: The findings here reinforce the importance of readability as a tool for efficient corporate disclosure and depict how the entity can use this element in favor of the company.