A Legibilidade das Demonstrações Financeiras e o custo de Capital de Terceiros.

This research aims to analyze the relationship between the level of readability of the financial statements and the cost of debt. The study covered a sample of 378 companies listed on B3 (Bolsa, Brasil and Balcão), from 2010 to 2017. The reports considered were the explanatory notes and management reports. Panel data regression models and ordinary least squares in two stages were used. The empirical results indicated a negative relationship between the level of readability of the explanatory notes and the cost of debt of the companies. For the management reports, no significant results were found. The research contributed to promote the discussion on the effects of the legibility of the reports released by the companies on the cost of debt. [ABSTRACT FROM AUTHOR]