Does OC moderate the effect of experiencing a loss in readability of financial reports?
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Organizational capital (OC) moderates the effect of experiencing a loss in readability of financial reports . Firms with higher OC report more readable 10-Ks, and OC lessens the adverse effects of loss on the readability of annual reports . Additionally, adjustments to readability can moderate firm litigation risk, and firms respond to shifts in the information environment by adjusting readability as circumstances warrant . The number of pages, words, and characters in the annual report, which reflects poor readability, has a negative effect on agency costs, but the presence of analyst coverage can moderate this effect . Financial report readability is positively associated with accounting conservatism, which could mitigate managerial opportunism in the qualitative disclosure setting . Less readable financial reports predict higher stock price crash risk, and the effect of financial reporting complexity on crash risk is more pronounced for firms with negative or transitory positive earnings news .
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| The answer to the query is not provided in the paper. The paper is about the relationship between the readability of financial reports and stock price crash risk. | |
| The provided paper does not mention anything about OC moderating the effect of experiencing a loss in readability of financial reports. | |
| The provided paper does not mention anything about OC moderating the effect of experiencing a loss in readability of financial reports. | |
| Yes, the paper states that organizational capital lessens the adverse effects of loss on the readability of annual reports. | |
4 Citations | The paper does not mention anything about OC moderating the effect of experiencing a loss in readability of financial reports. |
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