Readability and Mayoral Characteristics: Does the Mayor's Profile Play a Role in the Readability of Local Government Financial Statements?

Abstract

The topic of readability is central today, but most research has focused on the private sector, with limited studies in the public sector context. This study aims to address this gap by analyzing the readability of public sector financial statements and understanding the determinants influencing their readability. A sample of 103 Italian provincial capital municipalities' 2020 financial statements was selected to test readability levels and assess whether mayoral characteristics (gender, age, education) affect readability. Results show very low readability, with few variations linked to the mayor's characteristics, except gender. This study broadens the understanding of readability in the public sector and its influencing factors.