The chairman's statement - A content analysis of discretionary narrative disclosures

Authors: Smith, Malcolm; Taffler, Richard J

Source: Accounting, Auditing & Accountability Journal, Volume 13, Number 5, 2000 , pp. 624-647(24)

Publisher: Emerald Group Publishing Limited

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Abstract:

Explores whether the firm's discretionary narrative disclosures measure its financial risk of bankruptcy. Specifically examines the existence of an association between the content of the chairman's statement and firm failure. Show that these statements are closely associated with financial performance, reinforcing the argument that such unaudited disclosures contain important information. The results have implications both for the form and content of future narrative disclosures by management.

Keywords: Content Analysis; Corporate Communications; Disclosure; Narratives; Annualreports; Financial Performance

Document Type: Research article

DOI: http://dx.doi.org/10.1108/09513570010353738

Publication date: 2000-05-01