Accounting department, Faculty of Economics and Administrative Sciences, ferdowsi university of mashhad, mashhad, iran
10.22103/jak.2024.23897.4087
Abstract
Objective: The present study aims to examine the relationship between two important features of annual textual reports (tone and tone management) and the company's cash holding level, as well as the moderating role of conservatism in this relationship.
Methods: This study includes a sample of 1080 observations from 120 companies listed on the Tehran Stock Exchange, covering the period from 2013 to 2021. The research hypotheses were tested using multiple regression analysis.
Results: The results showed a significant positive relationship between tone and the level of cash holdings, while there is a significant negative relationship between tone management and the level of cash holdings. Additionally, conservatism can moderate the relationship between the tone and tone management of the board of directors' activity report and the company's cash holding level. Further analysis revealed that historical tone management also has an inverse effect on the company's cash holding level.
Conclusion: Currently, users of financial and investment market information rely not only on quantitative data but also on textual disclosures as a critical source of supplementary information. Therefore, the emphasis on positively and negatively charged words, manipulation of representations, and interpretations in qualitative disclosures is of great importance. Moreover, conservatism can strengthen the relationship between the tone of textual disclosures in the board of directors' activity report and the level of cash holdings. On the other hand, conservatism can weaken the relationship between tone management and the level of cash holdings. This contributes to a deeper understanding of the literature on market efficiency.
Mahmoudi yekebaghi, R. , darvishi, M. and vadiei, M. H. (2024). Investigating the Role of Conservatism in the Relationship between Liquidity Policies and Tone Management. Journal of Accounting Knowledge, (), -. doi: 10.22103/jak.2024.23897.4087
MLA
Mahmoudi yekebaghi, R. , , darvishi, M. , and vadiei, M. H. . "Investigating the Role of Conservatism in the Relationship between Liquidity Policies and Tone Management", Journal of Accounting Knowledge, , , 2024, -. doi: 10.22103/jak.2024.23897.4087
HARVARD
Mahmoudi yekebaghi, R., darvishi, M., vadiei, M. H. (2024). 'Investigating the Role of Conservatism in the Relationship between Liquidity Policies and Tone Management', Journal of Accounting Knowledge, (), pp. -. doi: 10.22103/jak.2024.23897.4087
CHICAGO
R. Mahmoudi yekebaghi , M. darvishi and M. H. vadiei, "Investigating the Role of Conservatism in the Relationship between Liquidity Policies and Tone Management," Journal of Accounting Knowledge, (2024): -, doi: 10.22103/jak.2024.23897.4087
VANCOUVER
Mahmoudi yekebaghi, R., darvishi, M., vadiei, M. H. Investigating the Role of Conservatism in the Relationship between Liquidity Policies and Tone Management. Journal of Accounting Knowledge, 2024; (): -. doi: 10.22103/jak.2024.23897.4087
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