Forward-looking disclosure tone in the chairman’s statement: obfuscation or truthful explanations

Hidaya Al Lawati, Khaled Hussainey, Roza Sagitova
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Abstract

Purpose This study aims to examine the impact of a firm’s financial performance on forward-looking disclosure (FLD) tone and assess whether managers are engaging in impression management or providing truthful explanations when their companies have good or poor performance. Design/methodology/approach This study used the content analysis method to measure the tone of FLD in the chairman’s statements of Omani financial institutions for the period 2014–2018. Regression analysis is then used to test the research hypotheses. Findings The authors found that good-performing firms are disclosing more good news, whereas poor-performing firms disclose more bad news. The results provided evidence that managers in Oman are providing truthful explanations in their narratives. Practical implications This study offered interesting policy and practical implications for policymakers, managers and stakeholders. This paper provided insights to policymakers regarding the FLD tone practices used in the chairman’s reports in Oman. Policymakers should be aware of the importance of the chairman’s reports in the eye of multiple stakeholders and, therefore, need to set guidelines on the type and quality of non-financial voluntary information that should be disclosed in such reports in the context of emerging economies. For academics, evidence has been provided by this study’s results regarding the impact of corporate performance on disclosure tone. Originality/value This study offered a novel contribution to disclosure studies by being the first to examine the performance-disclosure narrative tone relation, in the context of Oman.
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主席声明中前瞻性披露的语气:含糊其辞或如实解释
本研究旨在检验公司财务绩效对前瞻性披露(FLD)基调的影响,并评估当公司业绩好或差时,管理者是否从事印象管理或提供真实的解释。本研究采用内容分析法测量阿曼金融机构2014-2018年董事长声明中FLD的语气。然后使用回归分析来检验研究假设。作者发现,业绩良好的公司披露更多的好消息,而业绩不佳的公司披露更多的坏消息。结果表明,阿曼的管理者在他们的叙述中提供了真实的解释。本研究为政策制定者、管理者和利益相关者提供了有趣的政策和实际意义。本文为政策制定者提供了关于阿曼主席报告中使用的FLD语气实践的见解。政策制定者应该意识到主席报告在多个利益相关者眼中的重要性,因此,需要就新兴经济体背景下此类报告中应披露的非财务自愿信息的类型和质量制定指导方针。对于学术界来说,本研究的结果提供了关于公司绩效对披露语气影响的证据。原创性/价值本研究首次在阿曼的背景下研究了表现-披露叙事语气关系,为披露研究提供了新颖的贡献。
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来源期刊
CiteScore
7.90
自引率
3.00%
发文量
28
期刊介绍: The International Journal of Accounting & Information Management focuses on publishing research in accounting, finance, and information management. It specifically emphasizes the interaction between these research areas on an international scale and within both the private and public sectors. The aim of the journal is to bridge the knowledge gap between researchers and practitioners by covering various issues that arise in the field. These include information systems, accounting information management, innovation and technology in accounting, accounting standards and reporting, and capital market efficiency.
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