Readability of Financial Statements and the Sensitivity of Investors to Use of Accounting Information

Document Type : Original Article

Authors

Ferdowsi University of Mashhad

Abstract

In recent years, studying the quality of accounting and financial texts and it’s relation to others financial and non-financial proxies has became one of the new important matters in academic and profession literature. The purpose of this research is to investigate the relation between readability of financial statement (readability) and the sensitivity of investors to use of accounting information in Tehran Stock Exchange. The results show a significant relation between readability and the sensitivity of investors to use of accounting information. Furthermore, this sensitivity is higher for companies which have more non-professional and non-major investors.

Keywords

References

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