Rhetorical impression management in the letter to shareholders and institutional setting

Walter Aerts and Beibei Yan

Accounting, Auditing & Accountability Journal, 2017, vol. 30, issue 2, 404-432

Abstract: Purpose - Using composite style measures of the letter to shareholders, the purpose of this paper is to elaborate dominant rhetorical profiles and qualify them from an impression management (IM) perspective. In addition, the paper examines how institutional differences affect rhetorical profiles by comparing intensity and contingencies of rhetorical profiles of UK and US companies. Design/methodology/approach - The authors use automated text analysis to capture linguistic style characteristics of a panel of UK and US companies and employ factor analysis to determine rhetorical profiles. Next, the authors investigate company-level and country-level determinants of a company’s rhetorical stance. Findings - The authors document three prominent rhetorical profiles: an emphatic acclaiming stance, a cautious plausibility-based framing position, and a logic-based rationalizing orientation. The profiles represent distinct self-presentational logics and have different readability effects. Rhetorical IM is stronger in US companies, but higher expected scrutiny in the US institutional environment affects sensitivity of rhetorical postures to message credibility and litigation risk, while marginally increasing the less litigation-sensitive defensive framing style in US letters. Originality/value - The authors develop replicable archival-based measures of prominent rhetorical IM traits of the shareholder letter, based on composite style features. The authors argue that they are qualitatively different from content-based IM proxies. The authors investigate their institutional and organizational relevance by examining how company features and country-level differences affect incentives and constraints for style-based rhetorical IM.

Keywords: Institutional environment; Litigation risk; Letter to shareholders; Linguistic style; Metadiscourse; Rhetorical impression management (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:aaajpp:aaaj-01-2015-1916

DOI: 10.1108/AAAJ-01-2015-1916

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