The non-financial information in corporate annual reports is a crucial source for investors’ decision-making. We examine whether and how annual report readability affects opportunistic insider selling in the Chinese market. Our empirical findings show that lower readability of annual reports...

This study examines whether firms’ financial fraudulent behavior varies when local firms are led by nonlocal CEOs. Building on the social identity theory, we argue that nonlocal CEOs, due to their different location-based social identities, are perceived as outgroup leaders and face intergroup...