Rhetoric, argument and impression management in hostile takeover defence documents

This exploratory study extends the analysis of narrative disclosures from routine reporting contexts such as annual reports and press releases to non-routine takeover documents where the financial consequences of narrative disclosures can be substantial. Rhetoric and argument in the form of impression management techniques in narrative disclosures are examined. Prior thematic content analysis methods for analysing good and bad news disclosures are adapted to the attacking and defensive themes in the defence documents of target companies subject to hostile takeover bids. The paper examines the incidence, extent and implications of impression management in ten hostile takeover defence documents issued by target companies listed on the London Stock Exchange between 1 January 2006 and 30 June 2008. Three impression management strategies – thematic, visual and rhetorical manipulation – are investigated using content analysis methodologies. The findings of the research indicate that thematic, visual and rhetorical manipulation is evident in hostile takeover defence documents. Attacking and defensive sentences were found to comprise the majority of the defence documents analysed. Such sentences exhibited varying degrees of visual and rhetorical emphasis, which served to award greater or lesser degrees of prominence to the information conveyed by target company management.While exploratory in nature, this paper concludes with suggestions for future more systematic research allowing for greater generalisations from the findings.     

Austerity measures in crisis countries — results and impact on mid-term development

Since the onset of the sovereign debt crisis, the crisis-stricken countries in Europe have been pushed to take drastic steps to consolidate their finances and reduce their budget deficits. Despite strong public opposition and largely damaging short-run effects, the countries have undertaken many of the internationally recommended/mandated reforms and spending cuts. In this Forum, authors from Greece, Ireland, Italy, Spain and Portugal report on the fiscal consolidation achieved in their respective countries — and the sacrifices that have made it possible. Furthermore, the authors detail what remains to be done to resolve the crisis.     

CALL FOR PAPERS

Organized Uncertainty: Designing a World of Risk Management. Michael Power. Oxford University Press, 2007. xviii and 248pp. ISBN 978–0–9–925394–4. £24.99.

Intellectual Capital Reporting: Lessons from Hong Kong and Australia. J. Guthrie, R. Petty and F. Ricceri. The Institute of Chartered Accountants of Scotland, 2007, vii and 118pp. ISBN 978–1–904574–27–9. £15

The Routledge Companion to Fair Value and Financial Reporting. P. Walton (ed.). Routledge, 2007. xviii and 404 pp. ISBN 978–0–415–42356–4. £95.

UK Reporting of Intellectual Capital. Jeffrey Unerman, James Guthrie and Ludmila Striukova. ICAEW Centre for Business Performance, 2007. 68 pp. ISBN 978 1 84152 507 5. £20.     

Employment and remuneration of Irish chartered accountants: evidence of

Literature on gender-based salary differentials has proliferated in recent years but there have been few studies on salary differentials in the accounting profession. This paper examines factors influencing remuneration of Irish chartered accountants. Responses to the Leinster Society of Chartered Accountants (LSCA) annual salary survey in 1995 and 1996 were analysed. Employee-related and employer-related factors influencing remuneration were examined including gender, work experience, level of responsibility, employment contract and size and industry. Gender was a significant explanatory variable in explaining differences in salaries paid to employees working in non-audit businesses. Gender, however, was not found to be significant in explaining differences in salaries paid in audit practices. As partners in auditing firms are not included in this research (because partners do not earn a salary) this finding must be interpreted cautiously.     

Voluntary Disclosure of Profit Forecasts by Target Companies in Takeover Bids

This paper examines factors influencing voluntary forecast disclosure by target companies, whether good/bad news forecasts are disclosed and the influence of forecasts on the outcome of hostile bids. Disclosure was significantly more likely during contested bids. In agreed bids, probability of forecast disclosure was greater the shorter the bid horizon. In contested bids, forecasts were more likely where there were large block shareholdings, for larger targets and for targets in the capital goods industry. There was a clear tendency to disclose good news forecasts. A significant positive association between forecast disclosure and increase in offer price was found.     

From indigenous industry to foreign finance: the changing face of Dublin Docklands

Over the last two decades, economic restructuring has re-shaped both society and space, resulting in changes to urban form and an explosion in the number of brownfield sites. Increased socio-economic exclusion and the emergence of dualisms has become characteristic of the most recent period of industrialisation and has many policy implications for brownfield regeneration. This paper documents the early redevelopment of Dublin Docklands, highlighting the weaknesses of legislation and the increased social exclusion that has emerged. It is argued that by adopting the principle of environmental justice and by explicitly agreeing to legally binding broad-based development objectives, economic, physical and social rejuvenation can be simultaneously and successfully achieved.     

Cultural diversity in hospitality work: the Northern Ireland experience

International workers are a growing category of employees in the hospitality industry of Northern Ireland (NI). The retention and skills shortages of the industry are significant factors in facilitating this increase. Thus, international workers could be an invaluable new source of labour for the hospitality industry, provided that they are properly looked after and managed. However, little is known about the number of people moving to Northern Ireland to take up work in the hospitality industry. This paper sets out to answer some of the ‘unknowns’ – including nationality, demographic characteristics, educational, employment and economic background. The paper draws on data collected through a survey of migrant workers in nine hotels in Northern Ireland and focus groups with migrant employees in all of the survey establishments. Issues of social integration within the workforce and the wider community as well as the future that migrant workers see for themselves are discussed from a human resource perspective.     

A conceptual framework of impression management: new insights from psychology,sociology and critical perspectives

In this paper we develop a conceptual framework, based on the concepts of rationality and motivation, which uses theories and empirical research from psychology/behavioural finance, sociology and critical accounting to systematise, advance and challenge research on impression management. The paper focuses on research that departs from economic concepts of impression management as opportunistic managerial discretionary disclosure behaviour resulting in reporting bias or ‘cheap talk’. Using alternative rationality assumptions, such as bounded rationality, irrationality, substantive rationality and the notion of rationality as a social construct, we conceptualise impression management in alternative ways as (1) self-serving bias, (2) symbolic management and (3) accounting rhetoric. This contributes to an enhanced understanding of impression management in a corporate reporting context.     

An empirical examination of forecast disclosure by bidding companies

This paper examines voluntary disclosure of profit forecasts by bidding companies during takeovers. Disclosure is examined from two perspectives: (i) factors influencing disclosure and (ii) the influence of good news and bad news on disclosure. Takeover documents published during 701 takeover bids for public companies listed on the London Stock Exchange in the period 1988 to 1992 were examined. Two variables accounted for almost all the influences on disclosure of forecasts: bid horizon and type of bid. Probability of forecast disclosure was greater the shorter the bid horizon and during contested bids. In addition, there was some evidence that the nature of the purchase consideration offered by the bidder (cash or paper) and the industry of the bidder influenced disclosure. Disclosure was significantly more likely in paper bids and in the durable goods industry. Forecasts were more likely to be disclosed when firms had good news to report.