Journal article
Firm performance, reporting goals, and language choices in narrative disclosures
Journal of accounting & economics, Vol.65(2-3), pp.380-398
04/01/2018
DOI: 10.1016/j.jacceco.2018.02.002
Abstract
We use an experiment with experienced managers to provide more-direct evidence on how reporting goals and firm performance influence language choices. We find that bad news disclosures are less readable than good news, but only when managers have a stronger self-enhancement motive. Our results suggest that this difference is driven mainly by attempts to write more readable good news reports as opposed to intentional obfuscation of poor performance. In order to frame poor performance in a positive light, managers also focus more on the future, provide causal explanations for poor performance, and use more passive voice and fewer personal pronouns.
Details
- Title: Subtitle
- Firm performance, reporting goals, and language choices in narrative disclosures
- Creators
- H. Scott Asay - University of IowaRobert Libby - Cornell UniversityKristina Rennekamp - Cornell University
- Resource Type
- Journal article
- Publication Details
- Journal of accounting & economics, Vol.65(2-3), pp.380-398
- Publisher
- Elsevier B.V
- DOI
- 10.1016/j.jacceco.2018.02.002
- ISSN
- 0165-4101
- eISSN
- 1879-1980
- Language
- English
- Date published
- 04/01/2018
- Academic Unit
- Accounting
- Record Identifier
- 9984380441102771
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