Search results

This paper aims to investigate the association between negative tone in annual report narratives and future performance in the UK context. Under the principle-based approach in the UK, managers tend to bias the tone of narrative reports upward, as the reporting regime is more flexible than the rule-based approach in the USA. Consequently, any negative disclosure not mandated by regulators conveys credible information about a firm’s prospects.

This paper uses a sample of UK FTSE all-share non-financial companies from 2010 to 2019. The authors use the textual-analysis approach based on Loughran and McDonald (2011)’s wordlist (LM) to measure the negative tone in UK annual reports.

The results show a significant negative association between negative tone and future performance. Moreover, our further analyses suggest that only the negativity in the executive section of the annual disclosures correlates significantly with future performance. In summary, this study suggests that negativity does matter under the principle-based approach and can be used as an indicator of future performance.

In contrast to the literature arguing that only positivity has the power to affect a firm’s outcomes under the principle-based approach, the authors provide new empirical evidence suggesting that negativity also matters within the UK context and can be used as an indicator for future performance. Also, to the best of the authors’ knowledge, this is the first study to identify which section of the annual report is more informative about a firm’s future performance.

The purpose of this paper is to investigate the relationship between consumer movements and sustainability certification bodies in the development of food-related consumer campaigns.

This paper adopts a longitudinal approach to the study of an empirical case, the Fairtrade Towns (FTT) movement in the UK. It combines netnographic analysis on the FTT’s online forum with interviews with members of the community and of the certification body coordinating the movement.

The author conceptualises Sustainably Certified Consumer Communities (SCCC) as a distinct sub-group of consumer movements whose identity coalesces around a sustainable certification and that mobilises supporters with the purpose of promoting social change through the marketplace. The longitudinal approach allows the identification of definitional elements, main practices and unresolved tensions of this concept.

Research addressing the social movement dimension of contemporary food-related sustainability certification is limited. The present study advances consumer research through the conceptualisation of SCCC and contributes to a new understanding of the political roles that market-oriented certification bodies can play in consumer activism. From a managerial perspective, it provides valuable insights into practitioners interested in fostering community engagement.