Methinks thou dost protest too much

The far-reaching influence of accounting narratives calls for investigation whether and how organizations in crisis use their letters to shareholders strategically to engage in impression management by signaling their... [ view full abstract ]

The far-reaching influence of accounting narratives calls for investigation whether and how organizations in crisis use their letters to shareholders strategically to engage in impression management by signaling their trustworthiness.
Using a novel methodology to measure the demonstration of trustworthiness, we provide evidence in a sample of 250 letters that organizations in crisis engage in impression management to demonstrate their trustworthiness by drawing on indirect trust-related lexical units, mostly associated with the trust antecedent integrity. In addition, letters to shareholders are reaffirmed as an important vehicle for impression management. The findings suggest that organizations in crisis perceive trustworthiness demonstration as a necessity to ensure allocation of resources and corporate survival. Drawing on impression management theory, the study further evidences that trustworthiness demonstration is performed in an obfuscating manner reflecting Further, the study evidences that impression management with trust in crisis is executed in an indirect, hence, obfuscating manner that reflects organizations’ purpose to maintain an optimistic corporate image and avoid increased stakeholder alertness. Explaining whether an association between organizational crises and trustworthiness demonstration exists and how it can be measured, Aligning and extending previous literature on trust in accounting research, derived conclusions speak to the interests of corporate management, analysts and investors alike and demand for increased attention of current regulation on the influence accounting narratives may have.