Leung, Parker, and Courtis examine the concealment behaviour of minimal narrative disclosure (MND) in annual reports. They
Question:
Leung, Parker, and Courtis examine the concealment behaviour of minimal narrative disclosure (MND) in annual reports. They conclude that their “findings are consistent with MND in annual reports being a deliberate impression management strategy to conceal information and explanations about persistently poor firm performance and future prospects to distract investors' attention away from a firm's weakness or negative news.” (Leung, S., Parker, L. & Courtis, J. (2015) ‘Impression management through minimal narrative disclosure in annual reports’, The British Accounting Review, 47(3), September, p. 275).
Required
A. Critically evaluate the use of minimal narrative disclosure (MND) by preparers of annual reports to conceal certain information from users.
B. Explain whether, in your view, minimal narrative disclosure (MND) would benefit companies at times of a pandemic to distract attention away from poor performance or negative news.
Expert Answer:
The writing on the impression the board of optional story divulgences has generally centered around selectivity in the show and substance of data We contend that selectivity includes counting or precl... View the full answer
