Impact of judgment readability on financial crimes

Jalaj Pathak

Finance Research Letters, 2025, vol. 75, issue C

Abstract: Using NLP techniques, we extract the financial judgments from the overall set of supreme court judgments and find a one-unit increase in readability, implying harder-to-comprehend supreme court judgments, is significantly associated with a 2% increase in financial crimes for the next year. The results hold true for different categories of financial crimes and are robust to the other proxies for readability. This is in line with the theories of how the comprehensibility of the judgments often leaves scope for debate and calls for easier-to-read and comprehensible judgments so that such loopholes can be avoided.

Keywords: Financial crime; Financial Judgments; Financial text analysis (search for similar items in EconPapers)
JEL-codes: G14 G18 G28 G41 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:75:y:2025:i:c:s1544612325000443

DOI: 10.1016/j.frl.2025.106779

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