Abstract
This study examines the role of textual coherence in making annual integrated reports in South Africa more informative for investors. Using Latent Semantic Analysis (LSA) to measure coherence, I demonstrate that informativeness of integrated reports is positively associated with their coherence. Further analysis reveals that coherence mitigates the negative effects of linguistic complexity, captured by Fog Index, on report informativeness and stock price delay. My findings contribute to the growing literature on IR by documenting a potential benefit for investors, and also suggest that Fog Index or other traditional measures of linguistic complexity may not be sufficient to gauge the consequences of IR adoption on the informativeness of annual reports.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
