When SEC Chairman Arthur Levitt championed “plain English” writing in the 1990s, he argued that simpler financial disclosures would help investors make more informed decisions. Since then, we’ve also learned that it can help companies make more money.
Research: Simple Writing Pays Off (Literally)
Investors reward clear communication.
October 11, 2022
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Summary.
Financial writing is full of jargon and complexity. But a series of research suggests that investors are drawn to simple, clear writing with short sentences. The simple reason is that complex writing is off-putting — people tune out and find it dull, a fact confirmed by neuroscience research. The author reviews a series of studies on the financial value of good writing and offers a few tips to companies looking to communicate more clearly with investors, or with anyone else.
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New!
HBR Learning
HBR Learning
Writing Skills Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Writing Skills. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Capture your audience's attention with smarter emails, Slacks, memos, and reports.