Citation

Ong, Tze San and Teh, Boon Heng and Seng, Kai Cing and Ng, Sin Huei (2020) Does Information Overload of Annual Reports Matter? International Journal of Financial Research, 11 (2). pp. 243-254. ISSN 1923-4023

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Abstract

Nowadays, information overload is an increasing concern and has become an alarming issue. Bursa Malaysia requires all PLCs to have corporate disclosures in their annual reports in order to cultivate good corporate governance. However, annual report readability issues are evident and poor annual report readability is a common occurrence in Malaysia. Thus, this paper seeks to empirically investigate the association between information overload issues, annual readability and financial performance of Malaysian PLCs. Secondary data consisting of 85 PLCs from the years 2015 to 2017 were used. The results have revealed that the information overload issues, i.e. too many disclosures for each company, negatively affect the companies’ financial performance. Firms with annual reports that are easier to read with ideal readability have better financial performance. Not only that, fewer information overload issues tend to be encountered when the annual reports have good readability levels. Future studies are suggested to include primary data as well as non-listed companies for comprehensive coverage and generalization. Policy makers are encouraged to create minimum disclosure requirements which address the information gap between informed and uniformed investors. In addition, with developments in technology, advanced smartphone applications can be developed for investors to conveniently access the financial information of companies.

Item Type:	Article
Uncontrolled Keywords:	Corporate governance, information overload, annual reports, readability, financial performance, disclosures
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD2350.8-2356 Large industry. Factory system. Big business > HD2709-2930.7 Corporations. Including international business enterprises, diversification, industrial concentration, public utilities > HD2741 Holding companies. Corporate governance
Divisions:	Faculty of Management (FOM)
Depositing User:	Ms Rosnani Abd Wahab
Date Deposited:	08 Dec 2020 20:45
Last Modified:	08 Dec 2020 20:45
URII:	http://shdl.mmu.edu.my/id/eprint/7802

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