Is Tone at the Top Associated with Financial Reporting Aggressiveness?

Lorenzo Patelli, Matteo Pedrini

Risultato della ricerca: Contributo in rivistaArticolo in rivista

43 Citazioni (Scopus)


The discussion about the relationship between tone at the top and financial reporting practices has been primarily focused on the oversight role played by the board of directors and other structural elements of corporate governance. Another relevant determinant of tone at the top is the corporate narrative language, since it is a fundamental way in which the chief executive officer (CEO) enacts leadership. In this study, we empirically explore the association between financial reporting aggressiveness and five thematic indicators capturing different traits of ethical leadership from 535 annual letters to shareholders. We find that aggressive financial reporting is positively associated with CEO letters using a language which is resolute, complex, and not engaging. Our empirical findings highlight the importance of examining discretionary corporate narratives for the auditing process and the role of tone at the top in influencing accounting practices.
Lingua originaleEnglish
pagine (da-a)3-19
Numero di pagine17
RivistaJournal of Business Ethics
Stato di pubblicazionePubblicato - 2015


  • Accounting restatements
  • Financial reporting


Entra nei temi di ricerca di 'Is Tone at the Top Associated with Financial Reporting Aggressiveness?'. Insieme formano una fingerprint unica.

Cita questo