University of Iowa, Iowa City, Iowa 52242, USA;University of Colorado, USA
Abstract:
This paper explores a methodology for evaluating the content of narrative data. The method is applied to the president's letter and management analysis portions of annual reports in three industries. Comparisons of the narrative themes identified by the method are made to economic factors of sample firms that could alter perception of management performance. Results confirm hypothesized linkages between performance and narrative disclosure consistent with attribution theory.