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Impression management and retrospective sense-making in corporate annual reports: banks' graphical reporting during the global financial crisis

Jones, MJ and Melis, A and Gaia, S and Aresu, S (2017) 'Impression management and retrospective sense-making in corporate annual reports: banks' graphical reporting during the global financial crisis.' International Journal of Business Communication. ISSN 2329-4884

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Abstract

This study investigates two potentially complementary reporting scenarios in annual reports: reactive impression management and retrospective sense-making. It examines stock market performance graphs in European listed banks? annual reports before and during the global financial crisis. Our results indicate that banks reacted to the global financial crisis by omitting stock market performance graphs from the annual report and from its most prominent sections. On the other hand, banks reduced favorable distortions and favorable performance comparisons. No significant evidence of retrospective sense-making is found. Overall, the findings are consistent with impression management incorporating human cognitive biases, with companies preferring misrepresentation by omission over misrepresentation by commission. Under high public scrutiny, banks appear to seek to provide a more favorable view by concealing negative information rather than by favorable distortions or comparisons. The study contributes to the development of impression management theories. It uses a psychological interpretation that incorporates human cognitive biases, rather than adopting a purely economically based perspective.

Item Type: Article
Uncontrolled Keywords: graphs, impression management, omission bias, retrospective sense-making, stock market performance
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Faculty of Social Sciences > Essex Business School
Faculty of Social Sciences > Essex Business School > Essex Accounting Centre
Depositing User: Silvia Gaia
Date Deposited: 22 Jun 2017 09:01
Last Modified: 21 Sep 2018 14:15
URI: http://repository.essex.ac.uk/id/eprint/19865

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