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Changing graph use in corporate annual reports: a time series analysis

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Changing graph use in corporate annual reports : a time series analysis. / Beattie, Vivien; Jones, Mike.

In: Contemporary Accounting Research, Vol. 17, No. 2, 2000, p. 213-226.

Research output: Contribution to journalJournal article

Harvard

Beattie, V & Jones, M 2000, 'Changing graph use in corporate annual reports: a time series analysis', Contemporary Accounting Research, vol. 17, no. 2, pp. 213-226. https://doi.org/10.1506/AAT8-3CGL-3J94-PH4F

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Author

Beattie, Vivien ; Jones, Mike. / Changing graph use in corporate annual reports : a time series analysis. In: Contemporary Accounting Research. 2000 ; Vol. 17, No. 2. pp. 213-226.

Bibtex

@article{400c17f63e5f4dcd80ec68fd3be2a42e,
title = "Changing graph use in corporate annual reports: a time series analysis",
abstract = "Graphs in corporate annual reports form part of a powerfully designed annual report package that offers considerable potential for “impression management.” The primary purpose of this paper is to determine whether graph use depends on corporate performance. Time-series analysis, not previously used in the financial graphs literature, allows discretionary changes in graph use by companies to be identified and related to changes in individual companies' corporate performance over time. Based on the prior financial graphs and accounting choice literature, we develop two hypotheses that relate changes in graph use to changes in corporate performance. These hypotheses focus on the aggregate and individual company levels. We base our analysis on the corporate annual reports of 137 top UK companies that were in continued existence during the five-year period from 1988 to 1992. At both the aggregate and individual company levels, we find the decision to use key financial variable (KFV) graphs, the primary graphical choice, to be associated positively with corporate performance measures. This finding is consistent with the manipulation hypothesis - that is, that financial graphs in corporate annual reports are used to “manage” favorably the reader's impression of company performance, and hence that there is a reporting bias.",
keywords = "Communication, Corporate annual reports, Financial graphs",
author = "Vivien Beattie and Mike Jones",
year = "2000",
doi = "10.1506/AAT8-3CGL-3J94-PH4F",
language = "English",
volume = "17",
pages = "213--226",
journal = "Contemporary Accounting Research",
issn = "0823-9150",
publisher = "Wiley-Blackwell",
number = "2",

}

RIS

TY - JOUR

T1 - Changing graph use in corporate annual reports

T2 - a time series analysis

AU - Beattie, Vivien

AU - Jones, Mike

PY - 2000

Y1 - 2000

N2 - Graphs in corporate annual reports form part of a powerfully designed annual report package that offers considerable potential for “impression management.” The primary purpose of this paper is to determine whether graph use depends on corporate performance. Time-series analysis, not previously used in the financial graphs literature, allows discretionary changes in graph use by companies to be identified and related to changes in individual companies' corporate performance over time. Based on the prior financial graphs and accounting choice literature, we develop two hypotheses that relate changes in graph use to changes in corporate performance. These hypotheses focus on the aggregate and individual company levels. We base our analysis on the corporate annual reports of 137 top UK companies that were in continued existence during the five-year period from 1988 to 1992. At both the aggregate and individual company levels, we find the decision to use key financial variable (KFV) graphs, the primary graphical choice, to be associated positively with corporate performance measures. This finding is consistent with the manipulation hypothesis - that is, that financial graphs in corporate annual reports are used to “manage” favorably the reader's impression of company performance, and hence that there is a reporting bias.

AB - Graphs in corporate annual reports form part of a powerfully designed annual report package that offers considerable potential for “impression management.” The primary purpose of this paper is to determine whether graph use depends on corporate performance. Time-series analysis, not previously used in the financial graphs literature, allows discretionary changes in graph use by companies to be identified and related to changes in individual companies' corporate performance over time. Based on the prior financial graphs and accounting choice literature, we develop two hypotheses that relate changes in graph use to changes in corporate performance. These hypotheses focus on the aggregate and individual company levels. We base our analysis on the corporate annual reports of 137 top UK companies that were in continued existence during the five-year period from 1988 to 1992. At both the aggregate and individual company levels, we find the decision to use key financial variable (KFV) graphs, the primary graphical choice, to be associated positively with corporate performance measures. This finding is consistent with the manipulation hypothesis - that is, that financial graphs in corporate annual reports are used to “manage” favorably the reader's impression of company performance, and hence that there is a reporting bias.

KW - Communication

KW - Corporate annual reports

KW - Financial graphs

U2 - 10.1506/AAT8-3CGL-3J94-PH4F

DO - 10.1506/AAT8-3CGL-3J94-PH4F

M3 - Journal article

VL - 17

SP - 213

EP - 226

JO - Contemporary Accounting Research

JF - Contemporary Accounting Research

SN - 0823-9150

IS - 2

ER -