(Universidad de Murcia, Servicio de Publicaciones, 2021) Melón-Izco, Álvaro; Ruiz-Cabestre, Francisco J.; Ruiz-Olalla, Carmen
This study expands our knowledge about the readability of accounting narratives, their extension and companies
compliance with good governance practices. It also covers a gap in the analysis of the readability of
narrative information written in Spanish. We examined the readability in Management Reports of Spanish
companies listed on the Continuous Market of the Madrid Stock Exchange during the period 20102016.
The results reveal that the most extensive management reports that is, those with the greatest quantities of
text are the least readable and that the use of visual elements in reports helps to improve their readability.
Moreover, companies that follow good governance practices issue complex information with clarity, speed,
and simplicity, which improves the readability of accounting narratives