Annual Report Disclosure: Manipulative Silence

Project: Research

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The Sarbanes-Oxley Act of 2002 provides the legislative requirements and incentives for management to strengthen corporate disclosures and transparency and improve the communication of information to investors. However, not all companies reveal narrative voluntary disclosures that readers can reasonably expect. Narrative non-disclosures or manipulative silences distort communication because their absence can change how investors form and revise their expectations. No prior study has identified and explained the presence of manipulative silence in annual reporting. This research investigates its incidence and its relationship to operating results, dynamics of the business, prospects and plans for the future and financial review. The research also investigates the association between manipulative silence and corporate governance characteristics and other corporate attributes. The study will reveal the role of manipulative silence in impression management and will have policy implications for mandatory minimum disclosure requirements and in assessing the effectiveness of recent corporate governance reforms.


Project number7002144
Grant typeSRG
Effective start/end date1/04/0730/06/07