Table 5 Moderating impact of financial...

Table 5

Moderating impact of financial reporting complexity

Variable	DEVIATION1	DEVIATION2	DEVIATION3	DEVIATION4	DEVIATION1	DEVIATION2	DEVIATION3	DEVIATION4
TRUSTTL	−0.017***	−0.009*	−0.005***	−0.022**
TRUSTTL	(0.005)	(0.005)	(0.002)	(0.009)
LNWORDS	−0.097***	−0.073**	−0.044***	−0.153**
LNWORDS	(0.030)	(0.032)	(0.011)	(0.062)
LNWORDS × TRUSTTL	0.003***	0.001	0.001***	0.004**
LNWORDS × TRUSTTL	(0.001)	(0.001)	(0.000)	(0.002)
TRUSTTL					−0.029***	−0.020**	−0.010***	−0.049**
TRUSTTL					(0.009)	(0.010)	(0.003)	(0.019)
LNPAGES					−0.088***	−0.088***	−0.046***	−0.175***
LNPAGES					(0.029)	(0.031)	(0.011)	(0.060)
LNPAGES × TRUSTTL					0.003***	0.002*	0.001***	0.005**
LNPAGES × TRUSTTL					(0.001)	(0.001)	(0.000)	(0.002)
C and CONTROLES	YES	YES	YES	YES	YES	YES	YES	YES
YEAR_FE	YES	YES	YES	YES	YES	YES	YES	YES
IND_FE	YES	YES	YES	YES	YES	YES	YES	YES
Obs	1,976	1,976	1,976	1,976	1,976	1,976	1,976	1,976
R²	0.590	0.496	0.485	0.455	0.590	0.498	0.486	0.455
Adj R²	0.578	0.482	0.470	0.439	0.578	0.483	0.471	0.439
F	48.96***	33.54***	32.08***	28.37***	48.85***	33.67***	32.15***	28.44***

Variable	DEVIATION1	DEVIATION2	DEVIATION3	DEVIATION4	DEVIATION1	DEVIATION2	DEVIATION3	DEVIATION4
TRUSTTL	−0.017***	−0.009*	−0.005***	−0.022**
TRUSTTL	(0.005)	(0.005)	(0.002)	(0.009)
LNWORDS	−0.097***	−0.073**	−0.044***	−0.153**
LNWORDS	(0.030)	(0.032)	(0.011)	(0.062)
LNWORDS × TRUSTTL	0.003***	0.001	0.001***	0.004**
LNWORDS × TRUSTTL	(0.001)	(0.001)	(0.000)	(0.002)
TRUSTTL					−0.029***	−0.020**	−0.010***	−0.049**
TRUSTTL					(0.009)	(0.010)	(0.003)	(0.019)
LNPAGES					−0.088***	−0.088***	−0.046***	−0.175***
LNPAGES					(0.029)	(0.031)	(0.011)	(0.060)
LNPAGES × TRUSTTL					0.003***	0.002*	0.001***	0.005**
LNPAGES × TRUSTTL					(0.001)	(0.001)	(0.000)	(0.002)
C and CONTROLES	YES	YES	YES	YES	YES	YES	YES	YES
YEAR_FE	YES	YES	YES	YES	YES	YES	YES	YES
IND_FE	YES	YES	YES	YES	YES	YES	YES	YES
Obs	1,976	1,976	1,976	1,976	1,976	1,976	1,976	1,976
R²	0.590	0.496	0.485	0.455	0.590	0.498	0.486	0.455
Adj R²	0.578	0.482	0.470	0.439	0.578	0.483	0.471	0.439
F	48.96***	33.54***	32.08***	28.37***	48.85***	33.67***	32.15***	28.44***

Note(s): This table assesses the moderating effect of complexity (measured by the natural logarithm of words and pages) on the relationship between trust language and information transparency. It includes interaction terms to see how increases in document complexity influence the trust-information transparency relationship. This analysis helps identify conditions under which trust language may become more or less effective in conveying transparency. Standard errors in parentheses. All variables are defined in Appendix A. *p < 0.10, **p < 0.05, and ***p < 0.01

Source(s): Authors’ own work

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