Manager’s narratives in the board of director’s report to the annual general meetings: Is it thoughtful?
نویسندگان
1 PhD candidate, Department of Accounting, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran
2 Full professor of Accounting, Department of Accounting, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran
3 Assistant professor of Management, Department of Management, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran.
doi
چکیده
This paper evaluates the difference between the narratives of the board of directors’ report to the annual general meetings (AGM) and financial statements’ numbers through content analysis using the approach developed by Balata and Breton (2005) _ the index of level of optimism. This paper investigates that whether manager’s narratives is thoughtful. The sample includes 40 reports that are downloaded from CODAL website. We conclude that from point of profitability, there is a difference in the degree of optimism for narrative parts and financial statements in the low optimism and aggressive optimism companies and there is thoughtful communication in their narrative reports. From growth point of view, in low optimism and passively optimism companies, there is no thoughtful communication. Good performing companies tend to show a better picture of growth to shareholders. Results of management theme and its related financial ratios revealed that there is a significant difference in low optimism and passively optimism companies, but not in aggressive optimism ones. These ones are consistent with real world expectations. Managers always want to outline a good picture of themselves to market. Totally, our conclusions verify a thoughtful communication in a narrative parts of annual reports.
