Readability of 10‐K Reports and Stock Price Crash Risk
研究发现，10-K报告越难读，公司未来股价崩盘风险越高，因为管理者可能通过复杂报告隐藏坏消息，直到坏消息积累到临界点引发崩盘。
ABSTRACT This study shows that less readable 10‐K reports are associated with higher stock price crash risk. The results are consistent with the argument that managers can successfully hide adverse information by writing complex financial reports, which leads to stock price crashes when the hidden bad news accumulates and reaches a tipping point. Cross‐sectional analyses show that the effect of financial reporting complexity on crash risk is more pronounced for firms with persistent negative earnings news or transitory positive earnings news, greater chief executive officer stock option incentives, or lower litigation risk. Finally, accrual manipulation appears to be positively related to crash risk, even since the Sarbanes‐Oxley Act, if the manipulation is accompanied by complex 10‐K reports.