Advances in Consumer Research
Issue:6 : 1896-1906
Original Article
The effect of the tone of management commentary on the relevance of risk information in stock price valuation
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1
University of Kufa, Faculty of Administration and Economics
2
Mocfine Laboratory Iscae Manouba University
Abstract

The research aims to develop a two-dimensional analytical framework to analyze the content of narrative disclosure in financial reports, focusing on management comments and their tone, as well as their relationship to the appropriateness of the value of information about financial risks. The study sample comprised 12 banks listed on the Iraq Stock Exchange for the period from 2012 to 2021, resulting in 120 observations. The level of reporting on management comments was measured by analyzing the narrative content of management comment reports and applying the Ohlson (1995) model to calculate the appropriateness of the value of information about financial risks. The study employed multiple linear regression analysis to examine the explanatory and interactive relationships between the tone of reporting on management comments and the appropriateness of the value of information regarding financial risks. The study reached several conclusions, the most important of which is the existence of a statistically significant relationship between the tone of reporting on management comments and the appropriateness of accounting information related to financial risks...

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