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Prior research shows that managers with lower ability release less accurate management earnings forecasts and have more earnings restatements, lower earnings persistence and lower quality accruals estimations. Yet, whether the impact of managerial ability (MA) on financial reporting can be extended to the narrative section of firms' financial disclosures needs to be theoretically and empirically examined. The authors theorize in this paper that managers with low ability opportunistically inflate the tone to increase outsiders' perceptions of their ability. The authors also examine the relation between MA and the informativeness of tone to predict future firm performance and explain investors' reaction at earnings announcement.

The authors collect 24,000 earnings press releases of 1,149 distinct firms between 2004 and 2013. Content analysis is used to proxy the tone of the disclosures. The authors use the score developed by Demerjian et al. (2012) to measure MA. The authors then employ panel data regressions to examine the impact of MA on disclosure tone.

The authors find that low-ability managers inflate the disclosure tone to positively influence labor market's perceptions about their ability. This effect is magnified for younger and shorter-tenured managers, for firms with more intense monitoring and during bear markets. The authors also find that the tone of earnings press releases of low-ability managers results in a lower stock price reaction. Supplementary analyses show that the results do not only hold for the tone, but also can be extended to other linguistic features such as the numerical intensity and the readability of earnings press releases. The results are robust to alternative library specifications and other corporate disclosures such as CEO letters to shareholders or 10-K filings.

The paper shows that managers worry about how firm performance influences the labor market assessment of their ability. In particular, the authors find that managers of low ability are willing to opportunistically manipulate the content of corporate disclosures to improve this perception and build their reputation.

The authors contribute by providing theoretical and empirical evidence on how managers attempt to steer assessments of their ability by manipulating corporate disclosures. Consistent with prior business research suggesting that one's ability is a key feature that affects managers' propensity to engage in ethical practices, such as tax avoidance or manipulation of financial information, this study shows that less able managers tend to inflate the tone of the earnings announcements and that this ability-driven bias is likely to be magnified by career concerns.

This paper aims to investigate the informativeness of rhetorical impression management patterns of CEO letters and examines whether these rhetorical features affect financial analysts’ forecasting behaviour.

The authors use textual analysis on a sample of 526 CEO letters of US firms and apply factor analysis on individual linguistic style measures to identify co-occurrence patterns of style features.

The authors identify three holistic style patterns (assertive acclaiming, cautious plausibility-based framing and logic-based rationalizing) and find that assertive rhetorical feature in CEO letters is negatively related with the dispersion of financial analysts’ earnings forecasts and positively associated with earnings forecast accuracy. CEOs’ use of a rationalizing rhetorical pattern tends to decrease the dispersion of financial analysts’ earnings, whereas a cautious plausibility-based rhetorical position is only marginally instrumental in getting more accurate earnings predictions.

Whilst impression management communication is often theorized as manipulative and void of real information content, the findings suggest that impression management serves both self-presentation and information-sharing purposes.

This paper elaborates on the co-occurrence of style characteristics in management communication and is a first attempt to validate the external ramifications of holistic style profiles of corporate narratives by focusing on an economic target audience.

Financial disclosure manipulation is unethical and unlawful because it leads to less transparent reporting and harmful economic decisions based on misleading information. The purpose of this paper is to provide a summary and synthesis of research covering financial disclosure misrepresentation via impression management (IM). Ultimately, this report proposes that virtuous managers may be well-suited to provide transparent, objective disclosure. By extension, virtuous managers may oversee profitable firms and improve capital market efficiency. Suggestions for future research are presented.

This is an academic literature review covering financial disclosure manipulation. The findings are viewed through the lens of Christian virtue ethics (CVE).

IM studies commonly focus on specific methods used to mislead disclosure readers. Antecedent and mitigation strategies are less commonly noted in the research. This paper presents and analyzes IM tools and antecedents. Mitigation approaches are considered through the lens of CVE. This report proposes that virtuous managers may be well-suited to provide transparent, objective disclosure. By extension, virtuous managers may oversee profitable firms and improve capital market efficiency.

This present study focuses on the antecedents of IM in financial disclosures and introduces a novel perspective to financial disclosure mitigation – CVE. Financial disclosure authors and readers, researchers, financial regulators and accounting standards setters may be interested in the findings presented in this study.

In economic crisis, where tensions create anxiety and test the emotions of the firms' shareholders, communication from top management is very crucial as it provides the reflection of the managers' interpretation of the firms' situation and potential strategies. The goal of this paper is to investigate the relationships between sentiment, as an aspect of emotions extracted from the letters to shareholders, managerial discretion and the firms' subsequent performance and performance trajectory during crisis.

A sentiment analysis was conducted to extract the sentiment from the letters to shareholders, which were collected from firms in two countries with different levels of managerial discretion (US vs. Japan). Hypotheses were developed and tested using a series of regression analysis.

The primary findings indicate that (1) managerial sentiment identified in letters to shareholders can potentially be related to the firm's subsequent performance in the economic crisis, and (2) managerial discretion moderates the relationship between managerial sentiment and subsequent firm performance.

When the managerial discretion is high, firms' shareholders can use the sentiment in top management communications to gauge whether the firms' situation would be improving in the near future.

This study expands the current research on sentiment analysis and firm performance to the context of economic crisis by suggesting that managerial sentiment can be substantially provoked as firms are facing with stressful economic conditions. The study also highlights the moderating role of managerial discretion on the firms' subsequent performance.

The purpose of this paper is to describe the components, structure and theoretical underpinnings of a cognitive remediation intervention that was delivered within a supported education program for mental health survivors.

In total, 21 participants enrolled in the course Strengthening Memory, Concentration and Learning (PREP 1033 at George Brown College (GBC)) with the diagnosis of depression, anxiety, PTSD, ED and substance use disorder were included in the research. After a baseline assessment, participants completed 14 week cognitive remediation training (CRT) protocol that included six essential components that were integrated and implemented within the course structure of the supported education program at GBC. This was followed by a post-training assessment.

Analysis of the participants’ performance on CRT protocol using computerized games showed little significant progress. However, the research found a positive change in the self-esteem of the participants that was statistically significant and the findings also aligned with the social and emotional learning framework.

One of the limitations in the research was the use of computer-assisted cognitive remediation in the form of the HappyNeuron software. The value and relevance of computer assisted needs are to be further examined. It seems that the implementation of the course that explicitly address cognitive challenges creates a supportive environment can be helpful.

Despite the mixed results and the few limitations associated with the CRT intervention reported in the research, the study offers reminders of the complexity of cognitive remediation and all the factors involved that need to be taken into consideration.

This research created explicit space for addressing some of the implicit assumptions about the cognitive abilities when in post-secondary education.

This work is based on author’s previous work on cognitive remediation research within the supported education setting.