Anand Jha accepted for publication in the Journal of Business, Finance and Accounting
Mike Ilitch School of Business Professor and chair of the finance department Anand Jha has been accepted for publication in the Journal of Business, Finance and Accounting, which publishes high quality research papers in accounting, corporate finance and corporate governance.
The article is titled “Ex-Military CEOs and the Readability of Financial Reports,” and the abstract is printed below.
Abstract
In this study, we examine the effect of ex-military CEOs on the readability of 10-Ks. Using the Bog Index as a measure of readability, we find that firms run by ex-military CEOs have much more readable financial reports, mainly because of the words used in these financial reports. Ex-military CEOs also have a moderating effect—we find that their leadership lessens the adverse effects of loss and business complexity on the 10-K’s readability. These results are consistent with the view that ex-military CEOs resist the temptation to obfuscate negative news and may communicate complexity in operations more clearly. Overall, our findings indicate a possible behavioral explanation for why some firms have more readable annual reports.
