The justification of organizational performance in annual report narratives

Tessarolo, Izabella Frinhani; Pagliarussi, Marcelo Sanches; Luz, Antonio Thadeu Mattos da

doi:10.1590/s1807-76922010000200006

Cited by 11 publications

(16 citation statements)

References 23 publications

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“…As mentioned above, CEOs attempt to create and maintain a positive corporate image, even in years marked by poor performance and positive external characteristics. In fact, "companies with positive performance in a good external context blame negative effects on the environment in a proportion equivalent to that observed for companies with positive performance in a bad year" (Tessarolo & Pagliarussi, 2010). While these findings further support the idea that CEOs are more likely take advantage of self-serving attributions, further research found the exact opposite.…”

Section: Communicating Financial Resultsmentioning

confidence: 66%

Assets, Liabilities, and Gender Equity

Helf¹,

2017²

2019

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Men and women communicate differently. However, existing research has yet to examine if the stereotypical gender communication differences are evident in all groups and settings, in particular the case of Chief Executive Officers (CEOs) when presenting financial results. The growing number of female CEOs in the business world creates the possibility of gender-related variation in the communication of financial results, and thus different interpretations of that information by users of financial reports. This study synthesizes existing research on gender, CEO, oral, and financial communication to fill the gap in research and answer the question: do CEO gender and company economic performance affect how CEOs communicate financial results? Through text analysis of year-end earnings release press conferences and regression analysis of factors that influence measures of the attributes of communication, this study reveals male and female CEO communication patterns do not necessarily align with existing stereotypes. Results show clear differences as expected, unexpected differences, and several non-differences, illustrating that, as a whole, male and female CEO communication are surprisingly similar. The similarities may be due to the individual personalities of CEOs, a function of a long-standing male dominated executive environment, or other factors not controlled for in the models used in this study. Either way, analysts and other financial statement users should refrain from over-interpreting CEO language on the basis of gender as gender and economic performance appear to have an overall trivial effect on the substance and style of CEO communication.

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Section: Communicating Financial Resultsmentioning

confidence: 66%

Assets, Liabilities, and Gender Equity

Helf¹,

2017²

2019

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“…A better knowledge of the relationship between performance and the business cycles may also have implications for the impression management literature. This literature argues that managers try to attribute good performance to their ability or effort, while bad performance would be the result of unfavorable external factors (Aerts, 1994(Aerts, , 2005Tessarolo et al, 2010). This knowledge could also benefit sophisticated investors such as market analysts.…”

Section: On the Implications Of The Relationship Between Firms' Perfomentioning

confidence: 99%

“…Our evidence also contributes to studies on impression management 1 . Tessarolo, Pagliarussi, & da Luz (2010) study this phenomenon in Brazil. The research is based on two distinct years, a -good‖ year and a -bad‖ one, and reports the same blaming of negative performance on external factors.…”

Section: Introductionmentioning

confidence: 99%

Firm Performance and Business Cycles: Implications for Managerial Accountability

Motoki

Gutierrez

2015

AFA

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This study explores the relationship between firm performance and business cycles. These cycles are deviations from the trend of an economy-wide variable, in our case, GDP. Using a sample of Brazilian listed firms and accounting measures of performance, we find a generally positive contemporaneous relationship between the cycle and firm performance. Results also indicate that different industries show distinct relationships. This research presents a novel approach by linking firm performance from several industries to business cycles, indicating that managerial effort may be less determinant of firm performance than what is generally accepted. Our findings have potential implications for the design of more efficient compensation packages and to the study of managerial self-attributed performance.

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“…A considerable amount of research has been carried out on different aspects of corporate communications, such as assessment of their readability (Li, 2008), use of impression management tactics (Tessarolo et al, 2010) and the harmony between text and numbers (Balata and Breton, 2005). There is also growing interest in the hypothetical impact of the tone of financial texts on stock market variables.…”

Section: Introductionmentioning

confidence: 99%

Sentiment analysis em relatórios anuais de empresas brasileiras com ações negociadas na BM&FBovespa

Pagliarussi

Aguiar

Galdi

2016

BASE

Self Cite

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Este é um artigo de acesso aberto, licenciado por Creative Commons Atribuição 4.0 International (CC-BY 4.0), sendo permitidas reprodução, adaptação e distribuição desde que o autor e a fonte originais sejam creditados. ABSTRACTWe investigated the association between the tone of annual reports issued by a sample of listed Brazilian firms and market variables (abnormal returns, trading volume and price volatility). The tone was measured using sentiment analysis techniques (Liu et al., 2005;Liu, 2010). As in Loughran and McDonald (2011), we developed and used lists of positive, negative, litigious, uncertainty-related and modal words in Portuguese to assess the tone of annual reports. Using a sample of 829 annual reports from 1997 to 2009, we observed a weak association between the tone of annual reports and stock market variables in Brazil. Additionally, we considered a sub-sample prior to GAAP changes in Brazil (1997Brazil ( -2007 and our results are maintained. Contrary to other studies using data from the United States, we found that the tone of annual reports released by Brazilian firms is not conducive to estimating returns. RESUMOFoi investigada a associação entre o tom dos relatórios anuais divulgados por uma amostra de empresas brasileiras listadas na BM&FBovespa com variáveis de mercado (retornos anormais, volume de negociação e volatilidade). O tom dos relatórios foi medido por meio de técnicas de sentiment analysis (Liu et al., 2005;Liu, 2010). Seguindo o trabalho de Loughran e McDonald (2011), foram construídas listas de palavras positivas, negativas, litigiosas e de incerteza, além de modais, para construir uma medida de tom dos relatórios. A análise das 829 observações de relatórios, referentes ao período de 1997 a 2009, resultou na identificação de uma fraca associação entre as medidas de tom dos textos e as variáveis retorno anormal, volatilidade e volume anormal. Adicionalmente, realizou-se uma análise de robustez excluindo-se da amostra os anos de transição de regime contábil no Brasil (2008 e 2009), e nossos resultados se mantêm. Contrariamente aos estudos anteriores que usaram dados do mercado norte-americano, o tom dos relatórios divulgados pelas empresas brasileiras não contribui para melhorar as estimativas de retorno.Palavras-chave: sentiment analysis, tom textual, palavras positivas, palavras negativas, relatórios anuais.

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The justification of organizational performance in annual report narratives

Cited by 11 publications

References 23 publications

Assets, Liabilities, and Gender Equity

Assets, Liabilities, and Gender Equity

Firm Performance and Business Cycles: Implications for Managerial Accountability

Sentiment analysis em relatórios anuais de empresas brasileiras com ações negociadas na BM&FBovespa

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