Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5107515 | The British Accounting Review | 2016 | 43 Pages |
Abstract
This paper focuses on narratives published by UK companies, defined here as the content of annual reports excluding financial statements and notes to accounts. We endeavour to gauge the tone of these narratives by recording the frequency of positive words appearing in the text. We show that the extent of positiveness is related to market reaction around the disclosure date. This conclusion is maintained even after controlling for the financial figures that are reported simultaneously and company-specific characteristics. Consequently, narratives should not be perceived as mere impression management tools, but also as conduits for disseminating price-sensitive information.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Liafisu Sina Yekini, Tomasz Piotr Wisniewski, Yuval Millo,