Social security and national insurance trust of Ghana annual reports: a readability analysis

Abstract

The aim of annual reports is to give shareholders and other interested people information about a company’s activities and financial performance. The Social Security and National Insurance Trust (SSNIT) of Ghana churns out annual reports on yearly basis. But some of the annual reports are likely to be more difficult to understand than others and may not be effective if the reader is unable to completely comprehend the contents. Yet, nothing is known about the readability of annual reports produced by SSNIT. Hence, this paper attempts to evaluate the readability of annual reports of SSNIT and establish the trend in readability, covering a period of years (from 2011 to 2015). SMOG readability index was used to compute readability scores and descriptive statistics and ANOVA were used to analyse the data. The results indicate that the annual reports of SSNIT were generally very difficult to comprehend. In addition, the study showed that the readability level of all annual reports was similar. The trend indicates a deterioration in readability of the annual reports over the five-year period. The researcher recommends that authors of the report use plain language to enhance ease in the understanding of the reports.

KEYWORDS: SSNIT, annual report, readability, Ghana, SMOG