©　2018,　©　2018　Informa　UK　Limited,　trading　as　Taylor　&　Francis　Group.　In　this　study,　we　investigate　the　impact　of　firm-specific　information-processing　cost,　proxied　by　annual　report　readability,　on　investors’　firm-specific　information　usage,　proxied　by　firm　stock　return　synchronicity.　We　expect　that　more　readable　financial　reports　would　reduce　firm-specific　information-processing　costs　and,　therefore,　reduce　stock　return　synchronicity.　We　propose　a　new　readability　measure　and　demonstrate　that,　as　the　readability　of　annual　reports　increases,　the　firm’s　future　stock　return　synchronicity　decreases.　Furthermore,　the　effect　of　report　readability　on　stock　return　synchronicity　is　more　concentrated　on　firms　with　low　analyst　coverage　or　institutional　ownership.　Finally,　the　impact　of　readability　on　stock　synchronicity　is　more　concentrated　on　firms　with　high　information　asymmetry,　such　as　firms　small　in　size,　with　high　R&D　spending,　or　with　high　growth.　The　benefit　of　incorporating　more　firm-specific　information　(e.g.　from　a　more　readable　financial　report)　into　stock　price　is　consistent　with　the　SECs　continuous　attempt　to　make　public　company　reports　easier　to　comprehend.　Managers　of　publicly　listed　firms　should　be　aware　of　such　a　benefit　and　make　their　financial　reports　more　readable　by　incorporating　more　tables,　especially　when　their　firms　face　high　information　asymmetry.