Looks matter — even for annual company reports
A final note. There’s an old saying in business: “You can try putting lipstick on a pig, but it’s still a pig.”
Well, maybe it depends on what color you use — or how many colors you use. A new study by the University of Miami’s School of Business Administration finds that “prettying up” a company’s annual report can cause investors to place a higher value on a company. Just adding an extra color to the report, for example, can have the same effect on perceptions as a 20 percent increase in annual revenue.
I don’t know, color me yellow: I read these reports, I always have a jaundiced view.
For more information on the study: click here.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.