| Summary: | 碩士 === 國立高雄應用科技大學 === 會計系 === 106 === The management reduced the financial report quality of the company for their own personal interests and caused the agency problem of the company. However, after the Sarbanes-Oxley Act and other related regulations passed, the management of the company were less likely to reduce the number of financial reports. In the past, studies focused on the study of surplus figures, ignoring the difficulty in writing paragraphs in financial statements, while, in fact, writing in financial statements can be more directly used for information. Therefore, this study uses the Chinese text readability model of Song Yuting et al. (2013) to calculate the readability Index of financial statements for 2009-2016, and the readability empirical model of Lo et al. (2017) and Li (2008). Internal and external corporate governance mechanisms are added to understand how corporate governance affects the expression of Chinese text financial statements. The empirical results show that the management of a company with stronger corporate governance is neither likely to use hard-to-get words to writing financial statement content nor intend to make financial statements more difficult to read, and thus affect the decision-making of information users.
|
|---|
