Negative Tone and Readability in Management Discussion and Analysis Reports: Impact on The Cost of Debt

Companies use disclosure as a strategy to transfer and communicate selected information to stakeholders. This study examines the association between the firm's textual disclosure strategy and cost of debt by looking at the tone and readability of Management Discussion and Analysis (MDandA) repo...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autores principales:	Eka Sari Ayuningtyas, Iman Harymawan
Formato:	article
Lenguaje:	EN ID
Publicado:	Universitas Airlangga 2021
Materias:	negative tones, readability, textual disclosure, cost of debt Business HF5001-6182 Finance HG1-9999
Acceso en línea:	https://doaj.org/article/0956f4f3d79841bcaea28d18092e7e63
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:0956f4f3d79841bcaea28d18092e7e63
record_format	dspace
spelling	oai:doaj.org-article:0956f4f3d79841bcaea28d18092e7e632021-11-04T01:57:02ZNegative Tone and Readability in Management Discussion and Analysis Reports: Impact on The Cost of Debt1979-36502548-214910.20473/jmtt.v14i2.26681https://doaj.org/article/0956f4f3d79841bcaea28d18092e7e632021-08-01T00:00:00Zhttps://e-journal.unair.ac.id/JMTT/article/view/26681https://doaj.org/toc/1979-3650https://doaj.org/toc/2548-2149Companies use disclosure as a strategy to transfer and communicate selected information to stakeholders. This study examines the association between the firm's textual disclosure strategy and cost of debt by looking at the tone and readability of Management Discussion and Analysis (MDandA) reports and using a sample of 1596 Indonesian listed companies from all industries except the financial industry, from 2011 to 2018, and using ordinary least square (OLS) regression to test the research hypotheses. The findings suggest that both negative tone and poor readability level are associated positively with the cost of debt. This paper contributes to knowledge of the important aspects firms need to consider when setting their disclosure strategies, mainly how the tone and readability of firms' annual reports may be interpreted by users/creditors and affect the amount they will charge the firm for debt.Eka Sari AyuningtyasIman HarymawanUniversitas Airlanggaarticlenegative tones, readability, textual disclosure, cost of debtBusinessHF5001-6182FinanceHG1-9999ENIDJurnal Manajemen Teori dan Terapan, Vol 14, Iss 2, Pp 129-146 (2021)
institution	DOAJ
collection	DOAJ
language	EN ID
topic	negative tones, readability, textual disclosure, cost of debt Business HF5001-6182 Finance HG1-9999
spellingShingle	negative tones, readability, textual disclosure, cost of debt Business HF5001-6182 Finance HG1-9999 Eka Sari Ayuningtyas Iman Harymawan Negative Tone and Readability in Management Discussion and Analysis Reports: Impact on The Cost of Debt
description	Companies use disclosure as a strategy to transfer and communicate selected information to stakeholders. This study examines the association between the firm's textual disclosure strategy and cost of debt by looking at the tone and readability of Management Discussion and Analysis (MDandA) reports and using a sample of 1596 Indonesian listed companies from all industries except the financial industry, from 2011 to 2018, and using ordinary least square (OLS) regression to test the research hypotheses. The findings suggest that both negative tone and poor readability level are associated positively with the cost of debt. This paper contributes to knowledge of the important aspects firms need to consider when setting their disclosure strategies, mainly how the tone and readability of firms' annual reports may be interpreted by users/creditors and affect the amount they will charge the firm for debt.
format	article
author	Eka Sari Ayuningtyas Iman Harymawan
author_facet	Eka Sari Ayuningtyas Iman Harymawan
author_sort	Eka Sari Ayuningtyas
title	Negative Tone and Readability in Management Discussion and Analysis Reports: Impact on The Cost of Debt
title_short	Negative Tone and Readability in Management Discussion and Analysis Reports: Impact on The Cost of Debt
title_full	Negative Tone and Readability in Management Discussion and Analysis Reports: Impact on The Cost of Debt
title_fullStr	Negative Tone and Readability in Management Discussion and Analysis Reports: Impact on The Cost of Debt
title_full_unstemmed	Negative Tone and Readability in Management Discussion and Analysis Reports: Impact on The Cost of Debt
title_sort	negative tone and readability in management discussion and analysis reports: impact on the cost of debt
publisher	Universitas Airlangga
publishDate	2021
url	https://doaj.org/article/0956f4f3d79841bcaea28d18092e7e63
work_keys_str_mv	AT ekasariayuningtyas negativetoneandreadabilityinmanagementdiscussionandanalysisreportsimpactonthecostofdebt AT imanharymawan negativetoneandreadabilityinmanagementdiscussionandanalysisreportsimpactonthecostofdebt
_version_	1718445313270743040

Negative Tone and Readability in Management Discussion and Analysis Reports: Impact on The Cost of Debt

Ejemplares similares