Reporting of Good and Bad News: Case of the Pharmaceutical Industry

Kód výsledku v IS VaVaI

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Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Reporting of Good and Bad News: Case of the Pharmaceutical Industry

Popis výsledku v původním jazyce

Corporate narratives now play a crucial role in the company’s annual reporting, being a good source of information for shareholders to track the company’s performance. These narratives, however, are not regulated and are often an opportunity for companies to employ impression management techniques. The purpose of this research is to investigate the different disclosure strategies that organizations undertake, specifically regarding good aspects of their performance versus bad ones. The aim is to answer the research question – “What impression management tactics are companies using when reporting good vs bad news?”. Using a case study approach, the subject of this research is the European pharmaceutical industry, specifically three of the top companies – Bayer, GlaxoSmithKline, and Novartis. The data chosen for research are the letters to shareholders from each of the companies’ ten latest annual reports (2009-2018). The first part of the research involved coding the good and bad news in the letters to shareholders, following a predetermined coding rationale. These codings were then carefully analyzed to determine whether any impression management techniques were present. The main identified tactics are: stressing the positive and downplaying the negative, differential reporting, attribution, and competence enhancement. Additional impression management tactics, not necessarily pertaining to good and bad news, include ingratiation and the use of emotion. The implications drawn from this research are that the shareholders, and stakeholders in general, need to be vigilant when reading the corporate narratives, to discern when the meaning of the text is somehow manipulated to manage their impressions of the companies.

Název v anglickém jazyce

Reporting of Good and Bad News: Case of the Pharmaceutical Industry

Popis výsledku anglicky

Corporate narratives now play a crucial role in the company’s annual reporting, being a good source of information for shareholders to track the company’s performance. These narratives, however, are not regulated and are often an opportunity for companies to employ impression management techniques. The purpose of this research is to investigate the different disclosure strategies that organizations undertake, specifically regarding good aspects of their performance versus bad ones. The aim is to answer the research question – “What impression management tactics are companies using when reporting good vs bad news?”. Using a case study approach, the subject of this research is the European pharmaceutical industry, specifically three of the top companies – Bayer, GlaxoSmithKline, and Novartis. The data chosen for research are the letters to shareholders from each of the companies’ ten latest annual reports (2009-2018). The first part of the research involved coding the good and bad news in the letters to shareholders, following a predetermined coding rationale. These codings were then carefully analyzed to determine whether any impression management techniques were present. The main identified tactics are: stressing the positive and downplaying the negative, differential reporting, attribution, and competence enhancement. Additional impression management tactics, not necessarily pertaining to good and bad news, include ingratiation and the use of emotion. The implications drawn from this research are that the shareholders, and stakeholders in general, need to be vigilant when reading the corporate narratives, to discern when the meaning of the text is somehow manipulated to manage their impressions of the companies.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50205 - Accounting

Projekt

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Návaznosti

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Rok uplatnění

2019

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

7th International Scientific Conference on IFRS - Global Rules and Local Use - Beyond the Numbers

ISBN

978-80-907602-0-2

ISSN

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e-ISSN

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Počet stran výsledku

21

Strana od-do

148-168

Název nakladatele

Anglo-American University

Místo vydání

Praha

Místo konání akce

Praha

Datum konání akce

10. 10. 2019

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

000649685400012