The use and trend of emotional language in the banks’ annual reports: the state of the global financial crisis

Elamir, Elsayed A. H.; Mousa, Gehan A.

doi:10.21511/bbs.14(2).2019.02

Cited by 3 publications

(2 citation statements)

References 41 publications

(26 reference statements)

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“…We can conclude that Omani managers are honest and truthful with their stakeholders, and always try to disclose the relevant information to stakeholders, whether it is good or bad news. The results are consistent with Elamir and Mousa’s (2019) findings that trust words, as part of disclosure tone, dominate banks’ annual reports in the Middle East region.…”

Section: Discussionsupporting

confidence: 90%

“…Signalling theory postulates that managers of profitable firms disclose more information to signal their good achievement and to increase investors’ confidence (Aly et al , 2018). In this line, corporate disclosure provides an opportunity for the firm to create a certain image in the minds of investors and convince them that the firm is performing well to maximise their benefits (Elamir and Mousa, 2019). Managers tend to put their best effort into optimistically displaying firm performance using positive words and themes rather than negative ones (Schleicher, 2012).…”

Section: Context Background Literature Review and Hypotheses Developmentmentioning

confidence: 99%

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

Al Lawati,

Hussainey,

Sagitova

2023

IJAIM

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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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Section: Discussionsupporting

confidence: 90%

Section: Context Background Literature Review and Hypotheses Developmentmentioning

confidence: 99%

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

Al Lawati,

Hussainey,

Sagitova

2023

IJAIM

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Two is better than one: Using a single emotion lexicon can lead to unreliable conclusions

Czarnek

Stillwell

2022

PLoS ONE

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Emotion lexicons became a popular method for quantifying affect in large amounts of textual data (e.g., social media posts). There are multiple independently developed emotion lexicons which tend to correlate positively with one another but not entirely. Such differences between lexicons may not matter if they are just unsystematic noise, but if there are systematic differences this could affect conclusions of a study. The goal of this paper is to examine whether two extensively used, apparently domain-independent lexicons for emotion analysis would give the same answer to a theory-driven research question. Specifically, we use the Linguistic Inquiry and Word Count (LIWC) and NRC Word-Emotion Association Lexicon (NRC). As an example, we investigate whether older people have more positive expression through their language use. We examined nearly 5 million tweets created by 3,573 people between 18 to 78 years old and found that both methods show an increase in positive affect until age 50. After that age, however, according to LIWC, positive affect drops sharply, whereas according to NRC, the growth of positive affect increases steadily until age 65 and then levels off. Thus, using one or the other method would lead researchers to drastically different theoretical conclusions regarding affect in older age. We unpack why the two methods give inconsistent conclusions and show this was mostly due to a particular class of words: those related to politics. We conclude that using a single lexicon might lead to unreliable conclusions, so we suggest that researchers should routinely use at least two lexicons. If both lexicons come to the same conclusion then the research evidence is reliable, but if not then researchers should further examine the lexicons to find out what difference might be causing inconclusive result.

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Nationality Diversity in Corporate Boards and Tax Avoidance: Evidence from Oman

Alshabibi¹,

Pria

Hussainey

2022

Administrative Sciences

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We examine the impact of nationality diversity in corporate boards on tax avoidance by assessing whether foreign directors play monitoring or advisory roles. We use a sample of 1049 firm-year observations from companies listed on the Muscat Stock Exchange between 2009 and 2019. We find that board nationality and audit committee nationality are associated with lower effective tax rates, which equated to more tax avoidance (an advisory role). Our findings offer an important implication for policymakers who are interested in determinants of and mechanisms to prevent tax avoidance. The implication is that caution should be exercised when appointing foreign directors to the board of directors in Oman.

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The use and trend of emotional language in the banks’ annual reports: the state of the global financial crisis

Cited by 3 publications

References 41 publications

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

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

Two is better than one: Using a single emotion lexicon can lead to unreliable conclusions

Nationality Diversity in Corporate Boards and Tax Avoidance: Evidence from Oman

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