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
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.
Document Type: Research article
Publication date: 2000-05-01