Investigating the Determinants of Corporate Narrative Disclosure Readability in the Egyptian Context

Abstract

This study aims to examine the determinants of firms’ reports readability. It addresses firm level determinants, audit committee characteristics and board of directors’ characteristics. The study uses a sample of Egyptian non-financial firms listed in EGX100 during the period (2016-2019). To test the research hypotheses, fog index, descriptive analysis, Pearson’s correlation and Multiple regression are used. Results show that large firms, more board of directors’ meetings and more board of directors’ independence tend to lead to more complex firm’s narrative disclosure. on the other hand, firm’s performance, age, audit committee size, meetings, independence and board size are found to have no effect on the narrative disclosure readability of the Egyptian firms.