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Financial markets have become sophisticated, and merely quantitative information no longer suffices to meet their needs. This has led to qualitative reports becoming a focal point for many financial market stakeholders, who now consider Corporate Social Responsibility (CSR) as part of a company's vision, alongside financial statements. Given the lack of a specific framework for textual disclosures, managers have the ability to manipulate the tone of reports by carefully selecting their words. The aim of this research is to investigate how board gender diversity moderates the relationship between abnormal tone (tone management) and corporate social responsibility, as well as the relationship between the tone of these reports and corporate social responsibility. The research sample consists of 784 observations from a total of 112 companies listed on the Tehran Stock Exchange during the years 2015 to 2021. The results indicate that the presence of at least one woman on the board weakens the relationship between abnormal tone, abnormal tone from the previous year, and the tone of the board’s activity report with CSR reporting. Additionally, there is a significant negative relationship between the abnormal tone of the board's activity report from the previous year and CSR reporting.

Financial markets have become sophisticated, and merely quantitative information no longer suffices to meet their needs. This has led to qualitative reports becoming a focal point for many financial market stakeholders, who now consider Corporate Social Responsibility (CSR) as part of a company's vision, alongside financial statements. Given the lack of a specific framework for textual disclosures, managers have the ability to manipulate the tone of reports by carefully selecting their words. The aim of this research is to investigate how board gender diversity moderates the relationship between abnormal tone (tone management) and corporate social responsibility, as well as the relationship between the tone of these reports and corporate social responsibility. The research sample consists of 784 observations from a total of 112 companies listed on the Tehran Stock Exchange during the years 2015 to 2021. The results indicate that the presence of at least one woman on the board weakens the relationship between abnormal tone, abnormal tone from the previous year, and the tone of the board's activity report with CSR reporting. Additionally, there is a significant negative relationship between the abnormal tone of the board's activity report from the previous year and CSR reporting. [ABSTRACT FROM AUTHOR]

This study examines the association between abnormal disclosure tone in the Management Discussion and Analysis (MD&A) section of annual reports and analysts' forecasting behavior. Using analysts' forecast data of Chinese listed firms from 2008 to 2020, we find that analysts can discern abnormal tone in managers' disclosures, leading to a downward revision of earnings estimates and an enhancement of forecast accuracy. Moreover, we observe that abnormal tone in the MD&A section attracts analysts' attention as they navigate the challenges posed by tone management and diminished information transparency. Collectively, this paper enhances our understanding of analysts' forecasting behavior concerning the extent of tone management observed in MD&A disclosures within emerging markets. [ABSTRACT FROM AUTHOR]

The aim of this study is to examine the effect of abnormal accruals on abnormal tone in the Chief Executive Officer (CEO) statements of South Africa's (SA) top 40 Johannesburg Stock Exchange (JSE) listed businesses in the 2021 financial year. This study employs the quantile regression analysis and the generalised linear regression model. For this evaluation, the Top 40 JSE-listed firms' integrated annual reports (IARs), which include the annual financial statements and CEO statements, were extracted from the companies' official web pages. Findings revealed that abnormal accruals have a negative relationship with the abnormal tone used in the CEO statements of the top 40 JSE-listed companies. i.e., anomalous accruals and irregular tone move in different directions, as abnormal accruals increase, the abnormal tone in CEO statements decreases. This suggests that abnormal accruals and abnormal tone do not co-occur and that companies with abnormal accruals do not conceal them using abnormal tone in their CEO statements. We recommend that the amount of flexibility and judgment given to preparers of annual financial statements be reduced to lessen the use of earnings management practices. The research adds to the sparse literature on tone management and earnings management in developing nations, particularly SA. [ABSTRACT FROM AUTHOR]

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