Readability of Annual Reports and the Agency Problem of Corporation in the Context of Pakistan
Journal Title: International Journal of Tax Economics and Management - Year 2019, Vol 2, Issue 5
Abstract
This study is conducted to investigate the issue of readability of the annual report, which caused the conflict between the shareholders and the management. Annual reports are the integral source of information for the shareholders regarding their investment. To investigate the importance of the readability, we took the data of 21 non-financial companies which are in the KSE-30 index of Pakistan for the 10 years (2008-2017). The findings of our results depict that those firms whose annual report is more readable as compare to other facing low problem of the conflict between the shareholders and the management. Further results of this study indicate that under the better quality measures, relevent audit increase the readability of the annual report which reduce the agency cost.
Authors and Affiliations
Muneeb Ahmad, Zhou Maochun
Keywords
Related Articles
- EP ID EP620357
- DOI 10.35935/tax/25.2713
- Views 43
- Downloads 0
Validity of Malthusian Theory of Population in 20th Century in Terms of Using Scientific Technology to the Economic Growth and Strength
In the late eighteenth century, in 1798, England's renowned economist Thomas Malthus, in his book ‘Essay on the Principal of Population’1, propounded a stirring theory about population, according to his name, it is calle...
Introductory Discussion on Microeconomics
Here, the article will describe the definition of various types of microeconomics. The usefulness of economics are described here. And then the microeconomics’ nature has been described. Besides, microeconomic terms and...
Impact of Social Economics in Social Development
Here, in the article, basically the society and economics how are related that will presented. Even, the nature of social economics or socioeconomics will be described here. This is an important branch of economics. Tis...
Balance of Trade: Theories and Practices
The balance of trade, commercial balance, or net exports (sometimes symbolized as NX), is the difference between the monetary value of a nation's exports and imports over a certain period. Sometimes a distinction is made...
Gross Domestic Product & it’s Various Approaches
Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a period of time, often annually GDP (nominal) per capita does not, however, reflect differences in t...