scholarly journals Impression management in chairmen’s letters: An empirical study of banks’ annual reports in MENA region

2016 ◽  
Vol 12 (3) ◽  
pp. 69-80 ◽  
Author(s):  
Rasha Mahboub ◽  
Nehale Mostapha ◽  
Wagdy Hegazy
Keyword(s):  
Impression Management ◽  
North Africa ◽  
Annual Report ◽  
Bad News ◽  
Good News ◽  
Annual Reports ◽  
Mena Region ◽  
And Performance ◽  
Structural Manipulation ◽  
Resource Decision

The study aims to investigate the extent of existence of strategies of impression management (IM) in the narrative section of 200 annual reports of a sample of 50 banks in five different countries of Middle East and North Africa (MENA) region (Egypt, Jordan, Lebanon, Saudi Arabia, and United Arab of Emirates) for 2011-2014. Seven variables were employed to identify the existence of IM strategies in the chairmen’s letters of the bank’s annual reports. By employing descriptive statistics, frequency distribution and proportion test, it was found that four out of the seven strategies have existed in the chairmen’s letters. These strategies are reading ease manipulation, visual and structural manipulation, performance comparisons, and performance attribution. It is interesting to note that the narrative of the annual report of major banks in MENA region was very difficult to read. This result may perhaps encourage more consideration to the obstacles of effective communication that are the basic mean of facilitating rational resource decision making. Moreover, the results demonstrated that management of banks in MENA region choose benchmarks that portray current bank performance in the best possible light; further they highlight good news rather than bad news and placing this good news in the most emphasized sections of the chairmen’s letters; also they prefer to blame the environment for bad news, but take the credit themselves for good news. Therefore, the study recommends auditing regulators to issue a new standard in which auditors are required to confirm the reliability of the information in the accounting narratives of banks annual reports.

scholarly journals A study of discretionary narrative disclosure strategies of the most and least profitable MENA region banks

2017 ◽  
Vol 14 (2) ◽  
pp. 258-267
Author(s):  
Rasha Mahboub ◽  
Nehale Mostapha ◽  
Wagdy Hegazy
Keyword(s):  
Saudi Arabia ◽  
Impression Management ◽  
North Africa ◽  
Annual Reports ◽  
Negative Effects ◽  
Mena Region ◽  
Performance Attribution ◽  
Discretionary Disclosure ◽  
Narrative Disclosure ◽  
And Performance

The study aims to investigate whether the discretionary narrative disclosure strategies (DNDS) of impression management (IM) adopted by different banks in the narrative section of 200 annual reports of a sample of 50 banks in five different countries of Middle East and North Africa (MENA) region (Egypt, Jordan, Lebanon, Saudi Arabia, and United Arab of Emirates) vary according to their profitability for 2011-2014. Seven variables were employed to identify the association between profitability and the extent of existence of DNDS of IM in the chairmen’s letters of the bank’s annual reports. These variables are reading ease manipulation (REM), rhetorical manipulation (RM), thematic manipulation (TM), visual and structural implementation (VSM), performance comparisons (PC), choice of earnings number (CEN), and performance attribution (PA). By employing an independent sample t -test, it was found that three out of the seven strategies have differed significantly between banks in terms of profitability. These strategies are REM, PC, and CEN. Specifically, more profitable banks use very difficult language; selects favorable benchmark from prior years; and don’t select favorable earnings number in annual reports narrative. It is interesting to note that banks in MENA region produce narratives – especially the chairmen’s letter the discretionary disclosure section- to influence the perception of their stakeholders rather than to display the narratives in accordance with the “true and fair view” principle of accounting. Therefore, this study recommends regulators for more actively intervening to ensure that the voluntary status of the annual reports is more closely scrutinized by auditors in order to reduce the negative effects of DNDS of IM.

Responding to “Discrediting” Events: Annual Report Disclosure Responses to Environmental Fines

2002 ◽  
Vol 2 (1) ◽  
pp. 22-40 ◽  
Author(s):  
Hussein Warsame ◽  
Cynthia V. Simmons ◽  
Dean Neu
Keyword(s):  
Impression Management ◽  
Annual Report ◽  
Annual Reports ◽  
Matched Pair ◽  
Disclosure Quality ◽  
Publicly Traded ◽  
Environmental Disclosure ◽  
Environmental Disclosures ◽  
Disclosure Responses

In this study we consider how a discrediting event such as an environmental fine influences the quality of environmental disclosures in subsequent annual reports. Starting from prior work in the areas of impression management along with environmental and social responsibility disclosures, we propose that environmental disclosures provide organizations with a method of “managing” such discrediting events. Using a matched-pair sample of publicly traded Canadian companies that have been subject to environmental fines and those that have not; we analyze changes in pre-fine and post-fine environmental disclosure quality. After controlling for firm-specific characteristics, the provided results are consistent with this explanation.

scholarly journals Visual trends in the annual report: the case of Ericsson 1947-2016

2018 ◽  
Vol 23 (3) ◽  
pp. 312-325 ◽  
Author(s):  
Emelie Havemo
Keyword(s):  
Impression Management ◽  
Design Methodology ◽  
Annual Report ◽  
Annual Reports ◽  
Corporate Disclosure ◽  
Content Type ◽  
Visual Research ◽  
Visual Research Methods ◽  
Visual Elements ◽  
Reporting Practice

PurposeDisclosure research has argued that visuals are increasingly used in annual reports as a way to increase readability of the annual report, but comparatively little is known about of diagrams compared to graphs and photographs. The purpose of this paper is to provide a historical account of visuals use in corporate disclosure, with an emphasis on diagrams, to show changes from the 1940s until present-day reporting.Design/methodology/approachVisual research methods were applied to analyze how diagrams, photographs and graphs were used in 69 annual reports of the Swedish telecom company Ericsson.FindingsPhotographs have been used with increasing frequency since the 1950s. Graph and diagram use has increased significantly since the 1990s while photograph use remained stable, suggesting that graphs and diagrams increasingly complement photographs for visually representing the organization in corporate disclosure. Factors explaining the case company’s development include both internal (performance, individual preferences, shifting from a manufacturing-based strategy to a service-based strategy) and external (legislation, transformation of the telecom industry).Originality/valueVisual elements in annual reports are increasingly oriented toward immaterial representations of the organization’s standings and identity and diagrams are increasingly used and contribute to this. This finding motivates further research about diagram use in corporate communication, such as how different diagram types convey accounting messages, and whether diagrams serve as impression management devices. For regulators, it will be important to follow the emerging trend of diagram use, since it is becoming part of reporting practice.

Water governance benchmarking: concepts and approach framework as applied to Middle East and North Africa countries

Water Policy ◽  
2014 ◽  
Vol 16 (6) ◽  
pp. 1121-1139 ◽  
Author(s):  
Lucia De Stefano ◽  
Mark Svendsen ◽  
Mark Giordano ◽  
Brent S. Steel ◽  
Bridget Brown ◽  
...  
Keyword(s):  
Middle East ◽  
North Africa ◽  
Local Governments ◽  
Water Governance ◽  
Mena Region ◽  
Legal Documents ◽  
Official Policy ◽  
Current Water ◽  
And Performance

The world water crisis is a crisis of governance, as has been aptly stated. Yet how does one solve a crisis of governance? Water governance comprises complex nested and interlocked sets of decisions about water. It is inherently political, and is ultimately the responsibility of national, regional and local governments, working with their own citizens and with each other, to make improvements. In this context, there is a critical need in nearly every country to assess whether current water governance structures and practices are suitable and are delivering the desired results and, if not, where they fall short. When such assessments are made regularly and for several countries, it is possible to compare water governance status and performance both among countries and in a single country over time. This paper presents an approach to establishing a system of benchmarking water governance from content analysis of official policy and legal documents and a stratified set of stakeholder opinion panels. The approach assesses both the functions involved in water governance and the processes employed in making decisions. Six countries of the Middle East and North Africa (MENA) region (Egypt, Jordan, Morocco, Oman, Turkey and Yemen) comprise a case study to show how this approach works.

scholarly journals Tone disclosure and financial performance: evidence from Egypt

2018 ◽  
Vol 31 (1) ◽  
pp. 63-74 ◽  
Author(s):  
Doaa Aly ◽  
Sherif El-Halaby ◽  
Khaled Hussainey
Keyword(s):  
Financial Performance ◽  
Financial Reporting ◽  
Firm Growth ◽  
Positive Association ◽  
Ordinary Least Squares ◽  
Bad News ◽  
Good News ◽  
Annual Reports ◽  
Least Squares Regression ◽  
Content Type

Purpose This paper aims to examine the extent to which financial performance (FP) represents one of the main determinants for tone disclosure (TD) in Egyptian annual reports. The authors also measure the bidirectional relationship between TD and FP. Design/methodology/approach The manual content analysis is used to measure the levels of TD in annual reports for a sample of 105 firms listed on the Egyptian stock market. The sample covers a three-year period (2011-2013). Findings The descriptive analysis in this paper shows that Egyptian firms disclose more good news than bad news. Therefore, the net news disclosure, or net variances, between good/bad is positive. The empirical analysis shows a positive association between the narrative disclosure of good/bad news and FP based on return on assets. The authors also find a highly significant association between the auditor, profitability, leverage, firm growth and financial reporting of good/bad news information. Finally, the results of the ordinary least squares regression show that the causality between the two endogenous variables runs from FP to TD. Thus, TD is determined by FP. Originality/value This study offers a novel contribution to disclosure studies by being the first study to examine TD in one of the developing countries.

Exploring the R&D Disclosure Environment

1999 ◽  
Vol 13 (4) ◽  
pp. 323-342 ◽  
Author(s):  
Gary M. Entwistle
Keyword(s):  
Exploratory Study ◽  
Annual Report ◽  
Stock Exchange ◽  
Bad News ◽  
Annual Reports ◽  
Toronto Stock Exchange ◽  
Listed Firms ◽  
Cross Listing ◽  
Disclosure Management ◽  
Potential Benefits

In this exploratory study, a series of interviews with analysts and firm executives, supplemented with an analysis of annual report disclosures, is used to provide insights into the research and development (R&D) disclosure environment within which technology-intensive firms operate. The interviews cover questions of interest to both professional and academic accounting audiences, including the types of R&D information which firms reveal and analysts use, managers' concerns with revealing proprietary or bad news R&D information, the potential benefits from effective R&D disclosure management, and views on deferring vs. expensing development expenditures. The content analysis provides a description of the quantity, subject matter, and location of the R&D disclosures contained in 113 Toronto Stock Exchange-listed firms' annual reports. Finally, the regression analysis explores the association between six disclosure environment factors (R&D expense proportion, accounting policy for development expenditures, [cross-] listing status, industry, capital structure, and firm size) and the amount of R&D disclosure firms provide.

scholarly journals The incidence and quality of graphs in annual reports: A South African analysis of graph disclosure in state-owned entities

2021 ◽  
Vol 9 (1) ◽  
Author(s):  
Anees Kathrada ◽  
Yaeesh Yasseen ◽  
Zakiyyah Varachia
Keyword(s):  
South African ◽  
Impression Management ◽  
Quantitative Research ◽  
Annual Report ◽  
African State ◽  
Annual Reports ◽  
The Public ◽  
Finance Management ◽  
The Impact

Background: South African state-owned entities (SOEs) have become synonymous with issues such as poor service delivery and wasteful expenditure. State-owned entities are accountable to various stakeholders with the annual report viewed as an accountability mechanism. Given the different components of the annual report, this provides management with the opportunity to use different elements to present a better image of the SOE. Some elements that can be used to manipulate information are graphs.Aim: The purpose of this study was to analyse the use of graphs in the annual reports of SOEs and to conclude whether SOEs use graphs to manipulate information presented.Setting: The annual reports of the 277 SOEs included in the Public Finance Management Act (PFMA) schedules as of 31 March 2018 were analysed.Methods: This study followed a quantitative research method. Content analysis is used to identify impression management techniques used in the graphs of SOEs.Results: The findings indicate that 64% of SOEs present graphs in their annual reports, with non-financial graphs being disclosed more than financial graphs. Using the graph discrepancy index (GDI), it was found that SOEs tend to overstate data trends more than understating trends resulting in a better image of the SOE being presented. The presentational features of graphs were not used excessively to influence users.Conclusion: Graphs appear to be used as a form of impression management to manage users’ perceptions of SOEs. Given the impact of the annual report on users’ decision, the distortion of graph may impact the decisions taken.

Are Annual Report Graphs Being Used for Making Performance Attributions?

2016 ◽  
Vol 56 (4) ◽  
pp. 476-504 ◽  
Author(s):  
Laivi Laidroo
Keyword(s):  
Impression Management ◽  
Commercial Banks ◽  
Annual Report ◽  
Strong Support ◽  
European Countries ◽  
Annual Reports ◽  
Eastern European ◽  
Performance Attributions ◽  
Eastern European Countries ◽  
External Indicator

Previous literature on performance attributions has focused exclusively on annual report narratives. The objective of this article is to determine whether graphs in annual reports could be used for making performance attributions. The analysis focuses on annual reports of 33 commercial banks from 7 Central and Eastern European countries during 2006 to 2013. In line with expectations and results of previous research, there is strong support for the presence of negative performance attributions and attributional enhancements. A decrease in a bank’s profitability is associated with an increase in the use of external indicator graphs. If a bank’s profitability increases simultaneously with deterioration in a graphed external indicator, the use of such external indicator graphs increases compared with when profitability increase occurs simultaneously with an improvement in a graphed external indicator. There also exist signs that negative performance attributions are intentional and potentially driven by impression management motives.

A SELF-PRESENTATIONAL APPROACH TO TRANSMISSION OF GOOD AND BAD NEWS

2007 ◽  
Vol 35 (1) ◽  
pp. 63-78 ◽  
Author(s):  
Ahmet Uysal ◽  
Bengi Öner-Özkan
Keyword(s):  
Impression Management ◽  
Interaction Effect ◽  
Bad News ◽  
Good News ◽  
Significant Interaction Effect ◽  
Independent Variables ◽  
Management Perspective ◽  
Outcome Dependence ◽  
The Relationship ◽  
Scenario Study

People are reluctant to transmit bad news, a tendency named as the MUM effect. One explanation of this effect suggests that people do not want to construct negative impressions by being associated with bad news. In this study, transmission of good and bad news was examined from an impression management perspective. University students (N= 275) participated in a scenario study, with the valence of the news (good / bad) and outcome dependence on the recipient (high / low) as independent variables and transmission likelihood as dependent variable. Four variables, anticipated likeability, gratitude, perceived favor doing and ulterior motives, were assessed to form an ingratiation mediator. Results showed that participants were more likely to transmit good news than bad news. Also a significant interaction effect was obtained. In a high dependence condition participants were more likely to transmit good news and less likely to transmit bad news than participants in a low dependence condition. Moreover, the ingratiation construct significantly mediated the relationship investigated. In the second study (N = 74) similar findings were obtained except the interaction effect of dependence and news valence.

scholarly journals Corporate dreams – Appropriate aspirations and the building of trust in annual reports

2020 ◽  
Vol 20 (1) ◽  
Author(s):  
Henrik Rahm ◽  
Niklas Sandell ◽  
Peter Svensson
Keyword(s):  
Narrative Theory ◽  
Annual Report ◽  
Global Capitalism ◽  
Annual Reports ◽  
Financial Position ◽  
Financial Communication ◽  
The Future ◽  
And Performance ◽  
Nasdaq Omx

This paper argues that the corporate annual report is not only a document comprising retrospective accounts of financial position and performance, but also a text that points to the future by means of presenting dreams, aspirations and fantasies. However, these dreams are not to be seen as irrational deviations from the rationalistically oriented discourse of accounting. Quite to the contrary, the three corporate dreams identified in this study – the colonial dream, the evolutionary dream and the efficiency dream – are part of the ongoing self-narration of the company, in which it tries to display an allegiance to a set of appropriate aspirations that are considered legitimate in contemporary global capitalism. Drawing upon ideas from narrative theory, annual reports from 2005 to 2010 collected from NASDAQ OMX Stockholm have been analyzed with the purpose of understanding how corporate dreams are used in financial communication. These corporate dreams contribute, the paper argues, to the construction of legitimacy and trust.

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