IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v58y2022i2p417-427.html
   My bibliography  Save this article

Tone of Textual Information in Annual Reports and Regulatory Inquiry Letters: Data from China

Author

Listed:
  • Fan Yang
  • Jiayu Huang
  • Yongbin Cai

Abstract

This paper examines the impact of the tone used in the annual reports of listed companies on the probability of regulatory inquiries from 2014 to 2019. The empirical results verify that the more positive tone of the annual report, the more it can exert a psychological framing effect, which makes the regulator less likely to issue an annual report inquiry letter. Further analysis shows that this impact that the tone of annual reports has on the probability of a regulatory inquiry is significantly weakened when the company has irregularities or has been issued a modified audit opinion by the auditor. Overall, the results provide the basis for the government to regulate the information disclosure of the annual reports.

Suggested Citation

  • Fan Yang & Jiayu Huang & Yongbin Cai, 2022. "Tone of Textual Information in Annual Reports and Regulatory Inquiry Letters: Data from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(2), pages 417-427, January.
    • Handle: RePEc:mes:emfitr:v:58:y:2022:i:2:p:417-427
    DOI: 10.1080/1540496X.2021.1903870
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2021.1903870
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2021.1903870?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chu, Xiaojun & Wan, Xinmin & Qiu, Jianying, 2023. "The relative importance of overnight sentiment versus trading-hour sentiment in volatility forecasting," Journal of Behavioral and Experimental Finance, Elsevier, vol. 39(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:58:y:2022:i:2:p:417-427. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.