Obfuscation, Textual Complexity and the Role of Regulated Narrative Accounting Disclosure in Corporate Governance

  title={Obfuscation, Textual Complexity and the Role of Regulated Narrative Accounting Disclosure in Corporate Governance},
  author={Brian A Rutherford},
  journal={Journal of Management and Governance},
  • B. Rutherford
  • Published 1 June 2003
  • Business
  • Journal of Management and Governance
This paper examines whether poorly performingcompanies use textual complexity to obfuscatein the Operating and Financial Review (OFR) andthus undermine effective communication and goodgovernance. Prior research on the ‘obfuscationhypothesis’ has reached confused andcontradictory conclusions. The OFR is a usefulobject for testing the hypothesis because itssemi-regulated status provides a measure ofcommonality of content while leaving scope forvariability in textual complexity. This studyexamines… 

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