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Managing Investors' Perception Through Strategic Word Choices in Financial Narratives
Author(s) -
Riley Tracey J.,
Luippold Benjamin L.
Publication year - 2015
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.22064
Subject(s) - narrative , perception , tone (literature) , context (archaeology) , impression management , business , public relations , accounting , linguistics , psychology , political science , history , social psychology , philosophy , archaeology , neuroscience
Corporate managers have been shown to successfully use narrative impression management techniques to influence investors' perceptions of company performance. Examples of these techniques include using complex language to disguise bad news, attributing bad news to external forces, altering the tone of the narratives to sound more positive, and writing with more verbs than adjectives to convey the context as concrete. We provide an overview of the research examining managers' impression management techniques through word choice, along with evidence that suggests how investors respond. Based on this information, managers may wish to consider strategically choosing their language to ensure that their message is interpreted as intended. © 2015 Wiley Periodicals, Inc.