An integrated analysis of the chairman's letter and firm performance

Bibliographic Details
Main Author: Leite, Carolina Simões Correia Vieira
Publication Date: 2021
Format: Master thesis
Language: eng
Source: Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
Download full: http://hdl.handle.net/10400.14/36875
Summary: The impact of the use of complex financial narratives was studied and its link with firm performance. This was done by analysing one of the most important sections of the annual report, the chairman letter. The use of complex financial narratives was measured by the three variables: Fog Index, Flesch Formula and Log(Word Count). These three variables were regressed and analysed against two measures of financial performance (EPS and ROA) and a series of control variables, using a multivariate model. Furthermore, we also studied the use of forward looking words, during periods of economic struggle. Following this analysis our results confirm that non-financial English firms include several complex financial narratives within their chairman letter whenever firm performance declines. In addition, we found a negative relationship between the use of forward-looking words during periods of financial struggle.
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spelling An integrated analysis of the chairman's letter and firm performanceComplex financial narrativesFirm performanceForward-lookingwordsChairman letterNarrativas financeiras complexasDesempenho financeiroFoward-lookingCarta do PresidenteThe impact of the use of complex financial narratives was studied and its link with firm performance. This was done by analysing one of the most important sections of the annual report, the chairman letter. The use of complex financial narratives was measured by the three variables: Fog Index, Flesch Formula and Log(Word Count). These three variables were regressed and analysed against two measures of financial performance (EPS and ROA) and a series of control variables, using a multivariate model. Furthermore, we also studied the use of forward looking words, during periods of economic struggle. Following this analysis our results confirm that non-financial English firms include several complex financial narratives within their chairman letter whenever firm performance declines. In addition, we found a negative relationship between the use of forward-looking words during periods of financial struggle.Alves, Paulo Alexandre PimentaVeritatiLeite, Carolina Simões Correia Vieira2022-03-03T18:31:32Z2021-12-092021-092021-12-09T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/36875urn:tid:202894444enginfo:eu-repo/semantics/openAccessreponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiainstacron:RCAAP2025-03-13T15:36:56Zoai:repositorio.ucp.pt:10400.14/36875Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireinfo@rcaap.ptopendoar:https://opendoar.ac.uk/repository/71602025-05-29T02:14:06.795542Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiafalse
dc.title.none.fl_str_mv An integrated analysis of the chairman's letter and firm performance
title An integrated analysis of the chairman's letter and firm performance
spellingShingle An integrated analysis of the chairman's letter and firm performance
Leite, Carolina Simões Correia Vieira
Complex financial narratives
Firm performance
Forward-lookingwords
Chairman letter
Narrativas financeiras complexas
Desempenho financeiro
Foward-looking
Carta do Presidente
title_short An integrated analysis of the chairman's letter and firm performance
title_full An integrated analysis of the chairman's letter and firm performance
title_fullStr An integrated analysis of the chairman's letter and firm performance
title_full_unstemmed An integrated analysis of the chairman's letter and firm performance
title_sort An integrated analysis of the chairman's letter and firm performance
author Leite, Carolina Simões Correia Vieira
author_facet Leite, Carolina Simões Correia Vieira
author_role author
dc.contributor.none.fl_str_mv Alves, Paulo Alexandre Pimenta
Veritati
dc.contributor.author.fl_str_mv Leite, Carolina Simões Correia Vieira
dc.subject.por.fl_str_mv Complex financial narratives
Firm performance
Forward-lookingwords
Chairman letter
Narrativas financeiras complexas
Desempenho financeiro
Foward-looking
Carta do Presidente
topic Complex financial narratives
Firm performance
Forward-lookingwords
Chairman letter
Narrativas financeiras complexas
Desempenho financeiro
Foward-looking
Carta do Presidente
description The impact of the use of complex financial narratives was studied and its link with firm performance. This was done by analysing one of the most important sections of the annual report, the chairman letter. The use of complex financial narratives was measured by the three variables: Fog Index, Flesch Formula and Log(Word Count). These three variables were regressed and analysed against two measures of financial performance (EPS and ROA) and a series of control variables, using a multivariate model. Furthermore, we also studied the use of forward looking words, during periods of economic struggle. Following this analysis our results confirm that non-financial English firms include several complex financial narratives within their chairman letter whenever firm performance declines. In addition, we found a negative relationship between the use of forward-looking words during periods of financial struggle.
publishDate 2021
dc.date.none.fl_str_mv 2021-12-09
2021-09
2021-12-09T00:00:00Z
2022-03-03T18:31:32Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/masterThesis
format masterThesis
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.14/36875
urn:tid:202894444
url http://hdl.handle.net/10400.14/36875
identifier_str_mv urn:tid:202894444
dc.language.iso.fl_str_mv eng
language eng
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.source.none.fl_str_mv reponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron:RCAAP
instname_str FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron_str RCAAP
institution RCAAP
reponame_str Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
collection Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
repository.name.fl_str_mv Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
repository.mail.fl_str_mv info@rcaap.pt
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