Market reaction to the positiveness of annual report narratives

Journal article


Yekini, Liafisu Sina, Wisniewski, Tomasz Piotr and Millo, Yuval 2015. Market reaction to the positiveness of annual report narratives. The British Accounting Review. 48 (4), pp. 415-430. https://doi.org/10.1016/j.bar.2015.12.001
AuthorsYekini, Liafisu Sina, Wisniewski, Tomasz Piotr and Millo, Yuval
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.

KeywordsAnnual report narrative, content analysis, stock market reaction
Year2015
JournalThe British Accounting Review
Journal citation48 (4), pp. 415-430
PublisherElsevier
ISSN08908389
Digital Object Identifier (DOI)https://doi.org/10.1016/j.bar.2015.12.001
Web address (URL)http://hdl.handle.net/10545/623774
http://creativecommons.org/publicdomain/zero/1.0/
hdl:10545/623774
Publication dates11 Dec 2015
Publication process dates
Deposited23 May 2019, 18:13
Accepted02 Dec 2015
Rights

CC0 1.0 Universal

ContributorsCoventry University
File
File Access Level
Open
File
File Access Level
Open
Permalink -

https://repository.derby.ac.uk/item/922z2/market-reaction-to-the-positiveness-of-annual-report-narratives

Download files

  • 35
    total views
  • 0
    total downloads
  • 0
    views this month
  • 0
    downloads this month

Export as

Related outputs

Strategic Leadership and Firm Performance: The Mediating Role of Ambidexterity in Professional Services SMEs
Ambilichu, C., Omoteso, K. and Liafisu Sina 2022. Strategic Leadership and Firm Performance: The Mediating Role of Ambidexterity in Professional Services SMEs. European Management Review. pp. 1-19. https://doi.org/https://doi.org/10.1111/emre.12548
NGO accountability on environmentalism: a literature review of relevant issues and themes
Yekini, Liafisu Sina and Yekini, Kemi, C 2021. NGO accountability on environmentalism: a literature review of relevant issues and themes. in: Emerald Publishing.
Audit committee and audit quality: An empirical analysis considering industry expertise, legal expertise and gender diversity
Alhababsah, Salem and Yekini, Liafisu Sina 2021. Audit committee and audit quality: An empirical analysis considering industry expertise, legal expertise and gender diversity. Journal of International Accounting, Auditing and Taxation. 42, pp. 1-17. https://doi.org/10.1016/j.intaccaudtax.2021.100377
The determinants of CEO turnover: evidence from French listed companies
Boussaada, R, Yekini, Liafisu Sina and Makhlouf, M 2018. The determinants of CEO turnover: evidence from French listed companies. Research in Management Science. https://doi.org/10.3917/resg.129.0029
Corporate social responsibility performance and tax aggressiveness
Chijoke-Mgbame, M.A, Yekini, Liafisu Sina, Kemi, Y.C and Mgbame, C.O 2017. Corporate social responsibility performance and tax aggressiveness. Journal of Accounting and Taxation. https://doi.org/10.5897/JAT2017.0266
Examination of information load following IFRS adoption in an emerging market: evidence from Nigeria.
Okwuosa I, Yekini, Liafisu Sina and Oyemade B 2017. Examination of information load following IFRS adoption in an emerging market: evidence from Nigeria. International Accounting and Finance Research Journal.
The impact of mergers and acquisitions on shareholders’ wealth: evidence from Nigeria
Abeleje, R and Yekini, Liafisu Sina 2014. The impact of mergers and acquisitions on shareholders’ wealth: evidence from Nigeria. The Scottish Journal of Arts, Social Sciences and Scientific Studies.
Investigating the link between CSR and Financial Performance – Evidence from Vietnamese Listed Companies
Ho Ngoc, T.T and Yekini, Liafisu Sina 2014. Investigating the link between CSR and Financial Performance – Evidence from Vietnamese Listed Companies. British Journal of Arts and Social Sciences.
Impact of board independence on the quality of community disclosures in annual reports.
Yekini, K.C, Adelopo, I, Andrikopoulos, P and Yekini, Liafisu Sina 2019. Impact of board independence on the quality of community disclosures in annual reports. The Accounting Forum. https://doi.org/10.1016/j.accfor.2015.05.004
An Evaluation of Management Perspectives of Sustainability Reporting In The Nigerian Oil Industry.
Uzonwanne, G, Yekini, K, Yekini, Liafisu Sina and tobo, P 2014. An Evaluation of Management Perspectives of Sustainability Reporting In The Nigerian Oil Industry. Journal of Management and Sustainability. https://doi.org/10.5539/jms.v4n2p70
Psychopathic traits of corporate leadership as predictors of future stock returns
Wisniewski, Tomasz Piotr, Yekini, Liafisu Sina and Omar, Ayman 2019. Psychopathic traits of corporate leadership as predictors of future stock returns. European Financial Management. https://doi.org/10.2139/ssrn.2984999
Stock market returns and the content of annual report narratives.
Yekini, Liafisu Sina and Wisniewski, Tomasz 2015. Stock market returns and the content of annual report narratives. Accounting Forum. https://doi.org/10.1016/j.accfor.2015.09.001