...H. Scott Asay; W. Brooke Elliott; Kristina Rennekamp ABSTRACT Prior literature suggests that investors react less strongly to information in less readable disclosures. We extend this literature by considering how disclosure readability affects the sensitivity of investors' valuation judgments...

...Hun-Tong Tan; Elaine Ying Wang; Bo Zhou ABSTRACT: We conduct two experiments to investigate how readability (high versus low) and benchmark performance consistency (consistent versus inconsistent) influence investors' judgments. Using prior management guidance and year-ago quarter performance...

...Russell J. Lundholm; Rafael Rogo; Jenny Li Zhang ABSTRACT: We examine the readability of text and the use of numbers in the annual filings and earnings press releases of foreign firms listed on U.S. stock exchanges. We find that foreign firms generally write clearer text and present relatively...