Title : Busy CEO and Financial Statement Footnotes Readability: Evidence from Indonesia
Authors:
- Harymawan Faith
- Melinda Cahyaning Ratri and Eka Sari Ayuningtyas
Department : Accounting
Journal Name : Asian Review of Accounting
Kinds of Journal : Q2
Keywords : Governance, Busyness, Readability, Financial Statement Footnotes Readability, Indonesia
Abstract:
Purpose - This study aims to investigate the Correlation between a CEO's business background and the readability of financial statements footnotes in Indonesia.
Design/Methodology/Approach - This Study Utilizes a Sample Period Spanning from 2010 to 2018 and Employs Various Statistical Tests, Including Propensity Score Matching (PSM), Coarsened Exact Matching (Cem) and the Heckman Model, to demonstrate that can add address of causality and the heckman endogeneity without intraroducing bias.
Findings - As a result, the findings of this study indicate a statistical significant negative relationship between ceos with busy schedules and the readability of financial statement footnotes. This suggests that the companies are led by busy ceos are more likely to have financial statement footnotes that are easier to read.
Research Limitations/Implications-These Findings Hold Significance for Clarification Research Related to the Challenges of Contextual Analysis in Financial Statement Footnotes, which are distributed by compans on a Sentence-by-Sencence Base.
Practical Implications - The Practical Implications of the Findings of the Players to Actionable Steps that Management Can Undertake and Also Offer Regulators Opportunities to Monitor the Potential for Standard Settings.
Originity/Value - based on the results present, the authors are optimistic that the findings will pave the way for broader research on the impact of a busy CEO, Encompassing Not Only Financial Aspects but also nonfinancial dimensions. The Growing Popularity of readability is driven by the proliferation of textual reports that pose challenges in analysis and raise numerous inquiries
For details : https://doi.org/10.1108/ara-04-2023-0103