The Influence Of Management Characteristics On The Readability Of Listed Companies In China

In the capital market,investors decision-making is the main source of information of foreign information disclosure of listed companies,this information includes the financial and non-financial information,financial information reflects the enterprise operating performance in the past,is the basis of the analysis of the data sources,rather than financial information is a supplement to the enterprise financial information carrier,relative to the financial information,can reflect the trend of the future management of the more the role of more and more get people's attention.But some companies use subtle or empty language skills to manipulate language information to hide negative information about the company,thereby influencing the interpretation of the market.As the decision-maker of the company's information disclosure,the management of the company determines the format and content of the annual report,which determines the readability of the annual report.Management decisions are influenced by their own characteristics,so the management characteristics also have a significant impact on the readability of annual reports.However,there are few studies on the influence of the management characteristics on the readability of the annual report.This paper examines the influence of management characteristics on the readability of annual reports by revealing the theoretical relationship between management characteristics and annual readability.Provide strong evidence for further normative disclosure of relevant laws and regulations.This paper firstly the concept of annual report readability,and defines the concept of management features,the impression management theory,principal-agent theory,asymmetric information theory,the upper echelon theory and related theory to comb.The influence of management characteristics on readability of annual report is analyzed theoretically.Then based on the panel data of 1,252 listed companies between 2007 and 2015.The effect of management characteristics on readability of annual report is studied empirically.The results showed that:management of gender,age,management compensation management,management tenure,management equity and readability is significantly related to the annual report management degree is significantly negative correlation with annual report readability.Based on the above results,the corresponding Suggestions are put forward:improving the content and form of annual report;Establish the annual report information disclosure supervision mechanism;To give full play to management incentives;Improve the quality building mechanism of management.