The Use of Managerial Tone in Corporate Disclosure: A Literature Review in Accounting and Finance

Purpose–This review explores the evolving landscape of managerial tone in corporate disclosure by addressing three points: (1) research development, tracking its growth; (2) focus and critique, assessing key themes and limitations; and (3) future directions, synthesizing roles, determinants, and application of managerial tone while proposing future research areas.

Design/methodology/approach–A structured literature review (SLR) is employed, using an analytical framework with eight classification criteria to evaluate 163 studies from the past 15 years.

Findings–37% of studies assess tone’s informational role, 33% examine its determinants, while fewer explore its persuasive role, manipulation, or consequences. Most focus on the U.S., with others covering the UK, China, and international markets. Traditional media like SEC filings, conference calls, press releases and annual reports dominate, though studies on ESG reports, social media, and IPO roadshows are rising.

Originality–This review offers the most up-to-date assessment of managerial tone research, incorporating 78 new papers since 2022, —nearly half the sample. It extends prior reviews through a structured analytical framework with eight comprehensive criteria, enabling systematic evaluation of tone across disclosure media, regulatory environments, and research methodologies. It also broadens the scope beyond tone measurement to analyse tone's roles, research themes, disclosure contexts, and theoretical foundations.