Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7356018 | Journal of Accounting and Economics | 2018 | 66 Pages |
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.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
H. Scott Asay, Robert Libby, Kristina Rennekamp,