Experimental research on standard-setting issues in financial reporting

Koonce, Lisa; Mongold, Cassie; Quaid, Laura; White, Brian J.

doi:10.1016/j.aos.2023.101509

Cited by 2 publications

(1 citation statement)

References 132 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The final area that we will discuss briefly is practical takeaways. Here, the GAARP recommendation is that research motivated by a practical problem should offer actionable advice for practitioners who want to pursue a particular goal (Koonce et al, 2023). Researchers are often warned against making "normative" statements, and we agree that academics should not make or espouse policy in papers devoted to positive research.…”

Section: Practical Takeawaysmentioning

confidence: 99%

To read or to listen? Does disclosure delivery mode impact investors' reactions to managers' tone language?

Elliott,

Loftus,

Winn

2023

Contemporary Accting Res

View full text Add to dashboard Cite

We examine how disclosure delivery mode—oral versus written—influences investors' reactions to managers' tone language. We hypothesize that listening to disclosures, relative to reading them, causes managers' qualitative word choices to have a greater impact on investors' judgments. We theorize that this effect occurs because oral delivery mode promotes heuristic processing and qualitative tone language is an easy‐to‐process disclosure element. The results from an experiment in a conference call setting are consistent with our hypothesis and suggest a boundary condition. Specifically, the interaction of mode and tone language is significant in a setting where heuristic processing is likely (good earnings news) but not in a setting where investors are likely to scrutinize the disclosure (bad earnings news). Our results inform investors about the potential consequences of how they consume disclosures. Specifically, we show that investors are more susceptible to managers' tone language when listening to disclosures containing good news than when reading them.This article is protected by copyright. All rights reserved.

show abstract

Section: Practical Takeawaysmentioning

confidence: 99%