Investigating the Effect of Profit Predictability Criteria and the Relevance of Financial Information on the Readability of Companies' Annual Reports, Using Fogg's Index and Multivariate Regression.
1
PhD student, Department of Accounting Branch, Islamic Azad University,Semnan, Iran
2
Assistant Professor, Department of Accounting Branch, Islamic Azad University,Semnan, Iran
10.22051/jera.2024.48619.3311
Abstract
This research seeks to investigate whether the predictability of profit and the relevance of financial information influence the readability of financial statements of companies listed on the Tehran Stock Exchange. The primary objective of the study is to evaluate the impact of profit predictability and financial information relevance on the readability of annual reports of companies active in the Tehran Stock Exchange. The Fog Readability Index was employed to assess the readability of financial statements, while the models developed by Francis (2012), Perotti and Wagenhofer (2013), and Bushman (2004) were used to analyze the effects of profit predictability and financial information relevance. Examining 781 company-years over the period from 2011 to 2021 (1390 to 1400 in the Iranian calendar), this study demonstrates that the readability of companies’ annual reports is significantly influenced by the criteria of profit predictability and financial information relevance.
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Matinnazar, M. , Fazeli, N. , Khosravani, A. and Yalfani, A. (2025). Investigating the Effect of Profit Predictability Criteria and the Relevance of Financial Information on the Readability of Companies' Annual Reports, Using Fogg's Index and Multivariate Regression.. Empirical Research in Accounting, 15(1), -. doi: 10.22051/jera.2024.48619.3311
MLA
Matinnazar, M. , , Fazeli, N. , , Khosravani, A. , and Yalfani, A. . "Investigating the Effect of Profit Predictability Criteria and the Relevance of Financial Information on the Readability of Companies' Annual Reports, Using Fogg's Index and Multivariate Regression.", Empirical Research in Accounting, 15, 1, 2025, -. doi: 10.22051/jera.2024.48619.3311
HARVARD
Matinnazar, M., Fazeli, N., Khosravani, A., Yalfani, A. (2025). 'Investigating the Effect of Profit Predictability Criteria and the Relevance of Financial Information on the Readability of Companies' Annual Reports, Using Fogg's Index and Multivariate Regression.', Empirical Research in Accounting, 15(1), pp. -. doi: 10.22051/jera.2024.48619.3311
CHICAGO
M. Matinnazar , N. Fazeli , A. Khosravani and A. Yalfani, "Investigating the Effect of Profit Predictability Criteria and the Relevance of Financial Information on the Readability of Companies' Annual Reports, Using Fogg's Index and Multivariate Regression.," Empirical Research in Accounting, 15 1 (2025): -, doi: 10.22051/jera.2024.48619.3311
VANCOUVER
Matinnazar, M., Fazeli, N., Khosravani, A., Yalfani, A. Investigating the Effect of Profit Predictability Criteria and the Relevance of Financial Information on the Readability of Companies' Annual Reports, Using Fogg's Index and Multivariate Regression.. Empirical Research in Accounting, 2025; 15(1): -. doi: 10.22051/jera.2024.48619.3311
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