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:: Volume 4, Issue 8 (2-2020) ::
aapc 2020, 4(8): 1-31 Back to browse issues page
The Effect of Tone in Board's Activity Reports on Future Performance Based on Signaling and Opportunistic Approach
Mawlood Peleh1 , Naser Izadinia 2, Hadi Amiri3
1- PHD Student,Department of Accounting; Faculty of Administrative & Economic; University of Isfahan; Isfahan; Iran.(m.peleh@ase.ui.ac.ir)
2- Associate Professor,Department of Accounting; Faculty of Administrative & Economic; University of Isfahan; Isfahan; Iran(Corresponding author), , n.izadinia@ase.ui.ac.ir
3- Assistant Professor; Department of Economy; Faculty of Administrative & Economic; University of Isfahan; Isfahan; Iran. (h.amiri@ase.ui.ac.ir)
Abstract:   (6936 Views)
Tone is one of the most important features of textual information in financial reports, that there are two views about managers' use of it: providing information (signaling) or impression management (opportunistic approach).This study analyze the relation between tone of board's activity reports and future financial performance of companies. Bag of words method have been used for measuring tone and two indicators (future ROA and future operating cash flow) have been used for measuring future financial performance. The sample of this study consists of 449 firm-years from 2009 to 2018 and Dynamic panel method  were used to test hypothesis. The result shows that tone of board's activity reports have negative effect on future ROA and future cash flow. These results provide probabilistic evidence about opportunistic use of tone in financial reports.
Keywords: Bag of Words Method, Impression Management, Signaling Theory, Textual Information, Tone.
Full-Text [PDF 272 kb]   (1319 Downloads)    
Type of Study: Research | Subject: Special
Received: 2019/06/30 | Accepted: 2019/08/9 | Published: 2020/02/8
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Peleh M, Izadinia N, Amiri H. The Effect of Tone in Board's Activity Reports on Future Performance Based on Signaling and Opportunistic Approach. aapc 2020; 4 (8) :1-31
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Volume 4, Issue 8 (2-2020) Back to browse issues page
دوفصلنامه علمی حسابداری ارزشی و رفتاری journal of Value & Behavioral  Accounting
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