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Directors, Corporate Secretary, and Readability of Narrative Analysis and Management Discussion

Directors, Corporate Secretary, and Readability of Narrative Analysis and Management Discussion

Title: Directors, Corporate Secretary, and Readability of Management Analysis and Discussion Narratives

Authors: Moh. Baqir Ainun

Affiliations : Masters Program in Accounting, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

The purpose of this study is to examine the relationship between CEO characteristics and the readability of APM narratives and to examine the moderating effect of Corporate Secretary characteristics on this relationship. CEO and Corporate Secretary characteristics consist of age, tenure, education, and gender. The data analysis method used is descriptive statistics and hypothesis testing using multiple linear regression analysis and moderating regression analysis. The sample in this study is companies listed on the Indonesia Stock Exchange for the period 2014-2018. The valid sample in this study is 1,119 observations for the readability proxy R1 (natural logarithm of file size), 1,194 for the readability proxy R2 (number of pages), and 1,095 for the readability proxy R3 (natural logarithm of the number of words). The results of this study indicate that CEO characteristics such as age, tenure, and education are related to the readability of APM narratives. Meanwhile, the characteristics of the Corporate Secretary in the form of age, tenure, and education moderate the relationship between CEO characteristics and the readability of APM narratives.

Keywords: CEO characteristics, Corporate Secretary characteristics, readability, MD&A narrative.

Sources: http://repository.unair.ac.id/97791/