Purpose

This paper explores the factors that shape the complexity of company annual reports in the USA. Using a general-to-specific modeling approach, this study examines the determinants of annual reports' tone complexity.

Design/methodology/approach

Negative relationships were found between agency problems and tone; agency costs and readability of annual reports; profitability and tone; and ownership structure and tone complexity.

Findings

These relationships helped to confirm several of this study’s hypotheses, whereas positive associations were found between investment growth opportunities and tone complexity, which contradicts one of our initial hypotheses. Findings reveal that the more complex the language in an annual report is, the more difficult it is to strategically make a judgment or decision about the reported financial situation.

Originality/value

Analyzing these variables allows security analysts and investors to obtain important information, not available in the financial statements, which would enhance their understanding of the firm and improve their recommendations and investment decision-making process.

中文翻译：

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美国年度报告复杂性的决定因素：Tobit 模型的应用

目的

本文探讨了影响美国公司年度报告复杂性的因素。本研究采用从一般到具体的建模方法，研究了年度报告语气复杂性的决定因素。

设计/方法论/途径

代理问题和语气之间存在负相关关系；机构成本和年度报告的可读性；盈利能力和基调；以及所有权结构和语气复杂性。

发现

这些关系有助于证实本研究的几个假设，而投资增长机会和语气复杂性之间存在正相关关系，这与我们最初的假设之一相矛盾。调查结果显示，年度报告中的语言越复杂，对所报告的财务状况进行战略性判断或决策就越困难。

原创性/价值

分析这些变量可以让证券分析师和投资者获得财务报表中无法获得的重要信息，这将增强他们对公司的了解，并改进他们的建议和投资决策过程。