The Structure of Voluntary Disclosure Narratives: Evidence from Tone Dispersion

46 Pages Posted: 7 Jan 2014 Last revised: 5 Feb 2015

See all articles by Kristian D. Allee

Kristian D. Allee

University of Arkansas - Department of Accounting

Matthew D. DeAngelis

Georgia State University

Multiple version iconThere are 2 versions of this paper

Date Written: December 15, 2014

Abstract

We examine tone dispersion, or the degree to which tone words are spread evenly within a narrative, to evaluate whether narrative structure provides insight into managers’ voluntary disclosures and users’ responses to those disclosures. We find that positive and negative tone dispersion are associated with current aggregate and disaggregated performance and future performance, managers’ financial reporting decisions and managers’ incentives and actions to manage perceptions. Furthermore, we find that tone dispersion is associated with analysts’ and investors’ responses to conference call narratives. Our results suggest that tone dispersion both reflects and affects the information that managers convey through their narratives.

Keywords: voluntary disclosure, conference calls, narrative structure, tone, analysts

JEL Classification: M41, M49, G30

Suggested Citation

Allee, Kristian D. and DeAngelis, Matthew D., The Structure of Voluntary Disclosure Narratives: Evidence from Tone Dispersion (December 15, 2014). Available at SSRN: https://ssrn.com/abstract=2375898 or http://dx.doi.org/10.2139/ssrn.2375898

Kristian D. Allee (Contact Author)

University of Arkansas - Department of Accounting ( email )

University of Arkansas
Business Building 458
Fayetteville, AR 72701
United States
479-575-5227 (Phone)

Matthew D. DeAngelis

Georgia State University ( email )

515 Robinson College of Business
Atlanta, GA 30302
United States

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