What is Tone disclosure and its effects on Financial performance?

Doaa Aly et al wrote a paper about Tone Disclosure and Financial Performance in an Egyptian Context.

It is to be published by Accounting Research Journal.

This paper examines to what extent financial performance (FP) represents one of the main determinants for tone disclosure (TD) in Egyptian annual reports. The bidirectional relationship between TD and FP was measured. Manual content analysis to measure levels of TD in annual reports for a sample of 105 firms listed on the Egyptian stock market was used. The sample covers a three-year period (2011–2013). The descriptive analysis shows that Egyptian firms disclose more good news than bad news. Therefore, the net news disclosure, or net variances, between good/bad is positive. The empirical analysis shows a positive association between the narrative disclosure of good/bad news and FP based on return on assets (ROA). A highly significant association between the auditor, profitability, leverage, firm growth and financial reporting of good/bad news information was also found. Finally, the results of the ordinary least squares (OLS) regression show that the causality between the two endogenous variables runs from FP to TD. Thus, TD is determined by FP. A novel contribution to disclosure studies was offered by being the first study to examine tone disclosure in one of the developing countries.


“Aly, Doaa A and Hussainey, Khaled and Elhalaby, Sherif (2017) Tone Disclosure and Financial Performance: Evidence from Egypt”. is accepted to be published by  Accounting Research Journal. It is a 2* journal

The manuscript can be downloaded from the University repository http://eprints.glos.ac.uk/4735/


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