Positive Tone Research Articles

Strategic tone management in ESG reports and ESG risk

In this study, we investigate whether strategic tone management in environmental, social, and governance (ESG) reports can serve as an indicator of future ESG risk. Our baseline results reveal a positive association between abnormal positive tone in ESG reports and future ESG risk. The findings suggest that firms employ impression management strategy in their ESG reports to provide misleading information. Analyst coverage and media attention can mitigate this positive association. Heterogeneity analysis reveals that the positive correlation is stronger for firms mandated to disclose ESG reports and those adhering to the Global Reporting Initiative guidelines. Additional tests indicate that abnormal positive tone is positively associated only with future environmental risk, not with future social and governance risk. We observe this positive association exclusively in government-reported ESG risk, not in media-reported ESG risk. Our results offer valuable implications for mitigating the adverse impact of strategic tone management on corporate sustainability practices.

Corporate tax avoidance and narrative disclosure tone: a developing country perspective

Purpose This study aims to examine the link between tax avoidance, corporate governance and narrative disclosure tone using a sample of public companies in Pakistan. Design/methodology/approach Data for 125 companies listed on the Pakistan Stock Exchange (PSX) are collected over 10 years from 2011 to 2020. Sentiment analysis is conducted to determine the disclosure tone, and regression analysis is used to test the association between the variables. Findings This paper finds that firms that engage in tax avoidance tend to use a more positive disclosure tone and are more likely to engage in impression management. Moreover, promoting sound governance through board independence and gender diversity is associated with a less positive disclosure tone. However, firms with more family board members and higher foreign ownership are more likely to use a more positive disclosure tone. Practical implications Regulators can use this information to develop better guidelines to protect investors and ensure faithful disclosures to address both positive and negative news. Originality/value The study contributes to the literature by examining corporate tax avoidance as a determinant of narrative disclosure tone, a relationship that has not been widely explored. Moreover, as most disclosure tone research has been conducted in developed countries, this paper provides valuable evidence from a developing country.

Environmental, social and governance (ESG) performance and abnormal positive tone

Purpose The purpose of this study is to explore the relationship between environmental, social and governance (ESG) performance and tone management in the annual report. This is based on the notion that managers, driven by personal interests, may use their ESG accomplishments by using an abnormal positive tone to enhance their reputation or career prospects. Design/methodology/approach Using panel data from Chinese listed companies from 2010 to 2022, this study first investigates the relationship between ESG performance and abnormal tone management. The study then uncovers this relationship is mediated through the mechanisms of equity-based incentive and analyst coverage. The conclusions of this paper hold even after a series of robustness tests, such as propensity score matching, Heckman two-stage method and two-stage least squares with instrumental variables. Findings This study finds a positive correlation between ESG performance and the presence of abnormal positive tone in annual reports. Furthermore, the mechanistic analysis reveals that managers in companies with strong ESG performance are motivated to use an overly positive tone, largely due to their vested interests in equity-based compensation. Moreover, in an effort to alleviate the pressure stemming from heightened financial analyst coverage and enhance the impression conveyed through analysts' reports, managers with superior ESG performance also tend to inflate the tone within their annual reports. Practical implications This study provides significant insights into the ongoing dialogue surrounding ESG-related equity incentives, which incentivize managerial manipulation of stock prices through the use of abnormal positive tone. The findings call upon investors to exercise greater vigilance in examining narrative information in annual reports, as abnormally positive tones may not always faithfully represent performance but rather reflect managerial self-interest. Social implications There is an emphasis on the importance of robust oversight mechanisms within corporate governance bodies to curb the manipulation of tone for managers’ personal gain. Originality/value This study enhances the theoretical foundation of ESG studies, offering a holistic perspective on the intricate interplay among ESG performance, managerial behavior and financial markets, with potential implications for researchers, investors and regulators.

Only reflecting the industry or critical reporting? News coverage about sustainable finance in Germany

With the increasing need to channel financial capital to reach the sustainable development goals, various actors (political, financial and NGOs) are trying to place their perspectives in the public sphere. Previous research has mainly focused on the coverage of climate change in the news media, whereas the financial aspect of transitioning our society to a net-zero future has often been overseen. This study manually content-analysed 479 news articles in Germany to find out about the main topics, actors and representation of sustainable finance (SF) in the news media. Findings show that media coverage has steadily increased since 2019, with a strong focus on European politics and political actors in Germany. Whereas differences across news outlets were identified, SF was overall mainly presented in a positive tone with advantageous characteristics, pointing out the positive performance of sustainable investments. The findings imply a predominance of neo-capitalistic representations of SF in the news that forego a more critical, differentiated and diversified discussion of the role of finance and the economy in transforming our society towards carbon-neutrality.

Generation of arbitrarily patterned polarizers using 2-photon polymerization

Patterned polarizers are prepared using liquid crystals (LC) doped with a black dichroic dye and in combination with a linear polarizer. The pattern is achieved with a nanostructured LC alignment surface, that is generated using a two-photon polymerization direct laser write (2PP-DLW). This technique creates a pattern of high-resolution grooves in the photoresist at any arbitrary angle. The angle governs the LC orientation at any substrate surface point, determining the transmitted light linear polarization angle. This paper presents the first use of a 2PP-DLW cured positive tone photoresist for dichroic dye-doped LC alignment. Two complementary photoresists have been employed: conventional negative tone SU-8 photoresist and, in this context novel, positive tone S1805 photoresist. The alignment quality of the polarizers has been assessed by analyzing the transmission using an additional polarizer. For SU-8, the resulting grayscale pattern and a contrast ratio (CR) of 14 has measured. The uniformity of the alignment has been measured to be 65% using normalized Shannon entropy (H). For S1805, a CR of 37 was measured, and a uniformity of 63% was obtained. 2PP-DLW allows for shaping complex patterns in submicron dimensions and for the fabrication of arbitrarily patterned polarizers and other LC devices.

Unraveling the Experience of Affection Across Marital and Friendship Interactions

AbstractFeelings of affection (i.e., fondness and intense positive regard) are a hallmark of close relationships. Existing studies have often examined affection as a trait or behavior, but rarely as an emotional experience in social interactions. In two dyadic observational interaction studies (total N = 314 individuals), 49 US-based married couples (age range: 21–65) and 108 friendship dyads (age range: 15–26) engaged in two naturalistic 10-min conversations about (a) a topic of disagreement (conflict conversation) and (b) something they enjoyed doing together (pleasant conversation) and reported on their subjective emotional experiences (e.g., affection, using an emotion checklist following each conversation) and relationship satisfaction. Conversation transcripts were analyzed using natural language analysis. Results showed that experiences of affection were most strongly associated with experiences of compassion, amusement, and excitement, as well as with less anger, and were unrelated to most other negative emotions. Natural language analysis further showed that greater positive (but not negative) emotional tone was associated with greater affection (especially among friends in the pleasant conversations). Levels of affection were consistently higher in pleasant versus conflict conversations and similar across marital versus friendship interactions. Finally, experiences of affection were associated with greater relationship satisfaction for friends across conversations and for spouses (women) in the pleasant conversation. These findings contribute to our understanding of affection as a foundational emotional experience in close relationships and highlight avenues for future research.

Analyzing Interaction Patterns on Dating Sites: A Generic Structure Potential Approach

Online dating has become a popular stage to find a romantic partner. In such context, interlocutors must employ language carefully to reveal their intentions, attract attention and as well sustain intimacy with their potential partners. While previous studies have explored aspects such as self-disclosure and linguistic strategies in impression formation, there remains a gap in understanding the structured interactions that occur between potential partners on dating sites. This study, therefore, investigated the linguistic elements and interactional structures characterizing online dating discourse, focusing on two popular platforms, Tinder and Tagged. Adopting Halliday and Hasan’s Generic Structure Potential framework, the study examined conversations of thirty participants (potential partners) whose relationship ranges between two weeks to three months. Findings revealed seven key stages: Discourse Initiation (DI), Introduction (INTR), Question and Response (QAR), Request (RQ), Admiration (AD), Declaration of Dating Intention (DDI), and Topic Formation for Conversation (TF). Each stage is marked by specific linguistic features and serves unique functions within the communication process. DI involves friendly greetings and endearments to initiate conversation and signal interest. INTR often includes declarative statements that provide personal information, establishing familiarity and a good first impression. QAR facilitates information exchange through questions and responses. RQ, predominantly by males, involves polite modal verb constructions to move the conversation to more personal platforms or obtain further information. AD includes compliments and positive affirmations to express appreciation and create a positive interaction tone. DDI features direct and indirect questions about relationship status to clarify the intent behind the interaction and define the nature of the potential relationship. Finally, TF sustains conversation with statements and questions about daily activities and interests. This study contributes to the broader understanding of professional discourse by analyzing the structured linguistic strategies and interactional patterns employed in online dating, demonstrating how individuals strategically use language to manage impressions, negotiate intentions, and build relationships – skills also crucial in professional communication.

From Ads to Action: The Influence of Interest Group Supreme Court Confirmation Advertisements on Political Engagement

Interest groups capitalize on the opportunity to influence salient U.S. Supreme Court confirmations, while pursuing organizational and policy goals and hoping to mobilize the public. We test the opportunities and limits of ad influence on political mobilization specifically looking at calls to action (i.e., donations, contacting senators, and social media engagement). By analyzing responses to real interest group-produced video ads from Amy Coney Barrett’s and Ketanji Brown Jackson’s nominations, we discover ads can potentially influence individuals’ political behavior online and spur offline political engagement. Specifically, we find name recognition, partisan congruence, and positive tone positively influence respondent engagement in calls to action. We find ad format in terms of forced exposure and negative tone decrease engagement likelihood. Our study contributes novel insights into the role of online advertising in shaping political behavior around nominations in the digital age.

Female CEOs’ name gender-neutralization and audit fees: Evidence from China

We focus on how inconsistency or conflict between actual biological sex and name gender-orientation affects CEO trustworthiness, and thus firm audit fees. This study of Chinese listed firms led by female CEOs finds that female CEOs’ name gender-neutralization significantly reduces audit fees, and the presence of female auditors mitigates the above negative relationship. Mechanism tests find that female CEOs’ name gender-neutralization reduces audit fees by adopting positive tone, enhancing TMT stability, and improving social image. Heterogeneity analysis from the perspectives of CEO and auditor traits demonstrate that when female CEOs were born before the 1970s, also serve as chairmen, and are non-family CEOs, as well as when auditors tenure is shortened, audit report time lag is decreased, and the audit team gender structure is singular, female CEOs’ name gender-neutralization reduces audit fees more significantly. We find no evidence that female CEOs with masculine or gender-neutral names perform better or worse than those with feminine names in any substantive way. Additionally, female CEOs’ name gender-neutralization does not have a consistent effect on positive and negative abnormal audit fees.

Two decades of stakeholder voices: Exploring engagement in Romania's FSC forest management certification

Stakeholders' engagement in forest management decision-making is a critical tool for enhancing the business acceptability of the forest sector, and the Forest Stewardship Certification (FSC) scheme proactively involves stakeholders in its implementation. Based on the stakeholder theory, this study examined stakeholder's engagement in the FSC forest management certification in Romania over the past two decades to identify the extent and inputs of their involvement in the process. Using in-depth content analysis and text mining techniques, we explored publicly available information from 209 public reports covering 45 forest management certificates. According to data available in 178 reports, the average number of stakeholders notified per audit was 50.7. However, response evidence was found in 128 reports, with an average of 1.2 responses per audit, suggesting a limited engagement in the process. Additional stakeholders' feedback was received as part of the on-site audits, with an average of 10.2 responses per audit. Given the inconsistencies in the reporting format between certification bodies, we set a structured framework to analyse the findings on stakeholders' engagement from different report sections. The employed analytical framework sheds light on stakeholder and legitimacy theories in forest certification. Our findings highlighted stakeholders' predominantly positive feedback tone, evenly distributed across all stakeholder types and the four analysis domains. Negative feedback accounted for only 9.4% of the findings, highlighting areas for improvement for certificate holders, companies in the timber supply chain and public authorities. This study's findings may assist FSC in refining its stakeholder engagement practices, contributing to enhanced participation and better risk mitigation of non-compliance with standard requirements.

Instagram and Achilles tendon surgery: Evaluation of patients' perceptions of surgery

Background/Aim: The primary objective of this study was to conduct comprehensive research and analysis of patient-generated content related to Achilles tendon surgery on the social media platform Instagram. The aim was to gain deeper insights into patients' experiences during the perioperative period, which may contain valuable information pertinent to their condition, information of which the physicians may be unaware. Methods: A search was conducted on the Instagram database, covering a period of 78 months from February 2015 to August 2021. Posts utilizing the hashtags "#achillessurgery" and "#achillesrepair" were included in the analysis. Posts were assessed using a binary scoring system, considering variables such as tone, media format, return to work, rehabilitation or physical therapy, return to sports, images related to the ankle (e.g., scars, stitches, casts, dressings, walking boots), activities of daily living, and pain. Results: A total of 500 posts were reviewed, and a positive tone was observed in 77.8% of these. The average Instagram like ratio for these posts was computed as 9%. Statistical analysis revealed a significant relationship between post content and tone status (P=0.001). Specifically, within the positive tone group, informative content about the disease was comparatively lower and statistically significant when compared to exercise training and patient experience (P=0.001). Additionally, exercise training posts were found to be significantly lower than patient experience posts (P=0.001) within the positive tone group. In contrast, within the negative tone group, patient experience posts were significantly higher compared to informative content and exercise training posts (P=0.001). Moreover, the quantity of informative posts markedly surpassed the number of posts related to exercise training (P=0.001). Conclusion: In the positive tone category, people tended to emphasize personal experiences and participate in posts related to exercise training rather than actively seeking or exchanging information about the disorder. On the other hand, within the negative tone group, individuals were more likely to share adverse experiences, pursue support, and seek a deeper understanding from others. Their priority may also lie in sharing and gaining information specifically about the disorder. Our exploration of the use of social media platforms to delve into patient perspectives on Achilles tendon surgery provides an alternative insight into patients' experiences with the surgical process. By comprehending the content shared by patients on social media, surgeons may gain an improved opportunity to assess and address the surgical experience of their patients more effectively, ultimately contributing to enhanced patient care.

From Selfies to Surgery: Unveiling Trends and Ethical Considerations in Facial Feminization on Instagram.

Facial feminization surgery (FFS) is a critical gender-affirming intervention utilized to alleviate gender dysphoria. This study investigates the role of Instagram in shaping public perceptions and disseminating information about FFS. The authors analyzed the most recent 500 Instagram posts using the hashtag "#facialfeminizationsurgery" through a nonbiased data scraping platform between June 1, 2023 and October 13, 2023. Posts were categorized, for example, by tone, author, hospital, practice location, and whether it was a patient or physician-reported outcome. Of the posts, 85% connoted a positive tone. Health care providers and organizations posted 65.4% of content. Geographic breakdown showed that of posts written in English, 55% of health care providers were from the United States. The top 3 most frequently cited locations outside of the United States were India (25.2%), England (19.1%), and South Korea (16.0%). Common themes among posts were perception of FFS and whether it be deemed cosmetic or reconstructive, ethical considerations, and insurance/funding. 36% of posts were advertisements, and 20% were educational, which emphasized the role of social media in disseminating information. This study emphasizes the dynamic nature of social media and its large impact on FFS with regard to disseminating accurate information, navigating the patient-physician relationship, and posting ethical content. The demographics of the users and posts show growing global interest in FFS, a largely positive tone from users, and a large presence of health care workers. Lastly, Instagram is an educational tool for FFS and spreads awareness of insurance and issues faced by patients through first-hand perspectives.

Climate transition risk and corporate environment, social and governance performance: Evidence from Chinese listed companies

AbstractUsing a sample taken from Chinese A‐share listed companies from 2010 to 2020, we explore the effect of climate transition risk on corporate environment, social and governance (ESG) performance. Our finding shows that climate transition risk promotes corporate ESG performance. In addition, we discover that equity incentives play an important positive moderating role in the above relationship. Compared with positive media tone, the positive effect of climate transition risk on corporate ESG performance is more significant under the moderating effect of a negative media tone. Further analyses find that there exists a more prominent relationship between climate transition risk and corporate ESG performance in non‐state‐owned enterprises, enterprises with more female directors, and enterprises in highly market‐oriented regions. Our findings provide a reference to improve ESG practice to achieve corporate sustainable development and provide practical suggestions for better dealing with climate transition risk.

Comparing emotions in ChatGPT answers and human answers to the coding questions on Stack Overflow.

Recent advances in generative Artificial Intelligence (AI) and Natural Language Processing (NLP) have led to the development of Large Language Models (LLMs) and AI-powered chatbots like ChatGPT, which have numerous practical applications. Notably, these models assist programmers with coding queries, debugging, solution suggestions, and providing guidance on software development tasks. Despite known issues with the accuracy of ChatGPT's responses, its comprehensive and articulate language continues to attract frequent use. This indicates potential for ChatGPT to support educators and serve as a virtual tutor for students. To explore this potential, we conducted a comprehensive analysis comparing the emotional content in responses from ChatGPT and human answers to 2000 questions sourced from Stack Overflow (SO). The emotional aspects of the answers were examined to understand how the emotional tone of AI responses compares to that of human responses. Our analysis revealed that ChatGPT's answers are generally more positive compared to human responses. In contrast, human answers often exhibit emotions such as anger and disgust. Significant differences were observed in emotional expressions between ChatGPT and human responses, particularly in the emotions of anger, disgust, and joy. Human responses displayed a broader emotional spectrum compared to ChatGPT, suggesting greater emotional variability among humans. The findings highlight a distinct emotional divergence between ChatGPT and human responses, with ChatGPT exhibiting a more uniformly positive tone and humans displaying a wider range of emotions. This variance underscores the need for further research into the role of emotional content in AI and human interactions, particularly in educational contexts where emotional nuances can impact learning and communication.

Does data asset disclosure contribute to the market efficiency? Evidence from China

Information regarding firms' data assets and stock pricing has been more closely related when data is integrated into firms' value creation processes. However, since data asset disclosure can also be engaged in impression management by firms, its contribution to market efficiency may be impeded. Using a sample of Chinese A-share listed firms from 2014 to 2020, this study examines the impact of increased data asset information disclosure on the subsequent stock price volatility. The findings suggest that more data asset disclosure reduces stock return idiosyncratic volatility. The mechanism analysis shows that data asset disclosure reduces idiosyncratic volatility of stock prices by mitigating analyst forecast dispersion and noise trading induced by buy-sell imbalances. Moreover, this mitigating effect is more pronounced in firms with more analyst following, observable digital investments, and higher liquidity. But the effect is diminished if firms use a more positive abnormal tone in their annual reports.

Psychotherapy Supervision: An Invitational, Clarifying, Educational, Empowering, and Transparent (ICEE-T) Written Agreement.

The authors make the case for using a written instead of a spoken supervision agreement at supervision's outset in order to provide clarity and education about supervision, supply an accessible document that supervisees can readily reference, sidestep memory issues that negatively affect the supervision process, and enable dyadic collaboration that sets an immediate positive tone for supervision. The invitational, clarifying, educational, empowering, and transparent (ICEE-T) supervision agreement approach is described, with emphasis on the essential elements to put in place at the outset of supervision. A written agreement, which is valuable at any supervisee developmental stage, can be invaluable when working with novice supervisees (e.g., because of the anxieties and self-doubt of first-time supervisees) and is explored with that group foremost in mind.

The curvilinear effect of environmental, social, and governance performance on stock price crash risk in China

AbstractWith the concept of environmental, social, and governance (ESG) gaining traction worldwide, firms are becoming increasingly transparent about their ESG practices to enhance their legitimacy. This study draws on signaling theory, stakeholder theory, and opportunism theory, and uses panel data from Chinese A‐share listed firms from 2009 to 2022. It identifies a U‐shaped relationship between ESG performance and stock price crash risk, indicating that the increase in ESG performance decreases stock price crash risk, but after reaching a threshold value, it increases the risk. Green innovation moderates this U‐shaped relationship, reinforcing its effects. Meanwhile, earnings management plays a mediating role in this U‐shaped relationship. Heterogeneity analyses reveal that the U‐shaped relationship is significant in polluting industries, firms without the duality of chairperson and CEO, firms with high analyst coverage, and those under high market competition. The moderating effect of green innovation is particularly significant in firms with poor external legal environments and firms with positive management tone. Our findings provide novel insights and recommendations for policymakers, managers, and stakeholders to develop effective ESG policies.

Exploring the informativeness and drivers of tone during committee meetings: The case of the Federal Reserve

This paper examines the informativeness and drivers of the tone used by FOMC members to gain insights into the decision-making process of the FOMC. We use a bag-of-words approach to measure the tone of transcripts at the speaker-meeting-round level from 1992-2009 and find persistent differences in tone among FOMC members. We also document how Presidents of regional Federal Reserve Banks use a more volatile and positive tone than the Federal Reserve Bank Board of Governors members. Next, we investigate whether the tone used during FOMC deliberations is associated with future monetary policy decisions and study the drivers of differences in tone among FOMC members. Our results suggest that tone is useful in predicting future policy decisions and that differences in tone are mainly associated with the differences in the individual inflation projections of FOMC members.

What you say vs what you do: Utilizing positive emotional expressions to relay AI teammate intent within human–AI teams

With the expansive growth of AI’s capabilities in recent years, researchers have been tasked with developing and improving human-centered AI collaborations, necessitating the creation of human–AI teams (HATs). However, the differences in communication styles between humans and AI often prevent human teammates from fully understanding the intent and needs of AI teammates. One core difference is that humans naturally leverage a positive emotional tone during communication to convey their confidence or lack thereof to convey doubt in their ability to complete a task. Yet, this communication strategy must be explicitly designed in order for an AI teammate to be human-centered. In this mixed-methods study, 45 participants completed a study examining how human teammates interpret the behaviors of their AI teammates when they express different positive emotions via specific words/phrases. Quantitative results show that, based on corresponding behaviors, AI teammates were able to use displays of emotion to increase trust in AI teammates and the positive mood of the human teammate. Additionally, our qualitative findings indicate that participants preferred their AI teammates to increase the intensity of their displayed emotions to help reduce the perceived risk of their AI teammate’s behavior. When taken in sum, these findings describe the relevance of AI teammates expressing intensities of emotion while performing various behavioral decisions as a continued means to provide social support to the wider team and better task performance.

The Effect of Analysts’ Reports on Stock Liquidity: The Interaction of Ratings and Qualitative Indicators

We utilized a Python program to collect analysts’ reports on the constituents of the CSI 300 (China Securities Index). From these reports, we extracted analyst ratings, readability, and visualization using text analysis techniques. Additionally, a FinBERT model was employed to evaluate the tone and disagreement among analyst reports. Subsequently, the FGLS model was developed to explore the influence of analysts’ reports on stock liquidity. The analysis revealed a positive impact of analyst ratings on stock liquidity, with all qualitative indicators playing significant moderating roles. Specifically, there was a more pronounced response in stock liquidity to ratings when accompanied by higher readability, richer visualization, a more positive tone in the report, and lower disagreement. Our study highlights that investors consider both ratings and qualitative information from analyst reports, with the latter guiding investors on how to interpret ratings effectively. These findings have implications for investors, analysts, and regulators.