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News In Brief

Looks matter — even for annual company reports

Bob Moon Aug 22, 2011

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.

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