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A Tone Analysis of the Non-Financial Disclosure in the Automotive Industry

Author

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  • Valentina Beretta

    (Department of Economics and Management, University of Pavia, 27100 Pavia, Italy)

  • Maria Chiara Demartini

    (Department of Economics and Management, University of Pavia, 27100 Pavia, Italy)

  • Laura Lico

    (Faculty of Economics, Università degli Studi Internazionali di Roma, 00147 Roma, Italy)

  • Sara Trucco

    (Faculty of Economics, Università degli Studi Internazionali di Roma, 00147 Roma, Italy)

Abstract

This study’s purpose is twofold. On the one hand, it analyzes the relationship between the profitability of firms and the tone of nonfinancial disclosures; on the other hand, it tests the relationship between the environmental, social, and governing (ESG) performance of firms and the tone of nonfinancial disclosures on the automotive sector under two different and competing approaches, which are incremental information and impression management. The sample is composed of 68 nonfinancial reports issued by 17 automotive organizations between the years 2016 and 2020. Data analysis proceeded in two stages. First, a content analysis was performed to assess the linguistic attributes of the nonfinancial disclosure. Second, an inferential regression analysis was performed to test the hypothesized associations between firms’ performance and tone of their disclosures. The results of this study are aimed at providing evidence of the determinants of the verbal tone in the corporate nonfinancial reporting in a specific industry.

Suggested Citation

  • Valentina Beretta & Maria Chiara Demartini & Laura Lico & Sara Trucco, 2021. "A Tone Analysis of the Non-Financial Disclosure in the Automotive Industry," Sustainability, MDPI, vol. 13(4), pages 1-16, February.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:4:p:2132-:d:500644
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