Narrative accounting disclosures

    Research output: Chapter in Book/Report/Conference proceedingEntry for encyclopedia/dictionaryScientificpeer-review

    Abstract

    Narrative accounting disclosures are an integral part of the corporate financial reporting package. They are deemed to provide a view of the company “through the eyes of management”. The narratives represent management's construal of corporate events and are largely discretionary. Research in accounting narratives examines informational and presentational aspects of narrative financial reporting. Narrative accounting disclosures are studied from an informational perspective through usefulness surveys, predictive ability research, and thematic and readability studies. Presentational studies are related to impression management and primarily focus on selectivity and bias in the content patterns of the narrative disclosures. In addition, contextual factors affecting the content of the narrative disclosures have been investigated. Cross-sectional and temporal variation in narrative accounting disclosures may originate from internal sources (e.g., performance changes, the establishment of routines, and corporate governance structures) and external forces (e.g., analyst following, regulatory monitoring, and litigation risk).
    Original languageEnglish
    Title of host publicationWiley Encyclopedia of Management, Volume I – Accounting
    EditorsC. Clubb, S. Imam
    Place of PublicationChichester, Oxford
    PublisherWiley & Sons
    Pages311-317
    Edition3
    ISBN (Print)9781118785317
    Publication statusPublished - 2015

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  • Cite this

    Aerts, W. (2015). Narrative accounting disclosures. In C. Clubb, & S. Imam (Eds.), Wiley Encyclopedia of Management, Volume I – Accounting (3 ed., pp. 311-317). Wiley & Sons.