Systematic Literature Review and Bibliometric Analysis of Grammatical Violations in Financial Reports
DOI:
https://doi.org/10.17524/repec.v17i2.3289Keywords:
Violação Gramatical; Bibliometrix; Qualidade da Informação Contábil; Compreensibilidade; Bibliometria.Abstract
Objective: This study presents a systematic literature review and bibliometric analysis of grammatical violations in financial statements and their effects on the capital market. Similar to previous studies, the conceptual framework concerns the violation of grammatical norms associated with the quality of financial statements.
Method: The method included two alternative and complementary paths: i) a systematic review in which the grammatical violation proxy is presented as a valuable tool to measure the quality of accounting information by analyzing the texts of explanatory notes of financial statements, and ii) a bibliometric analysis based on the journals listed in Web of Science, and Bibliometrix, an R-Tool for mapping analysis. Results and Contributions: The in-depth literature analysis through a systematic review and a comprehensive analysis performed via bibliometrics allow this study to serve as a conceptual framework for future research. There are discussions on the potential directions of accounting research on the subject, which is strongly developed in the United States, but little explored in Brazil and other countries. Finally, the analysis suggests that the framework through which data become available to the market might restrict the application of this proxy.
References
Alipour, M., Ghanbari, M., Jamshidinavid, B., & Taherabadi, A. (2019). The relationship between environmental disclosure quality and earnings quality: a panel study of an emerging market. Journal of Asia Business Studies, 13(2), 326-347.
Araújo, C. A. (2006). Bibliometria: evolução histórica e questões atuais. Em questão, 12(1), 11-32.
Aria, M., & Cuccurullo, C. (2017). bibliometrix: An R-tool for comprehensive science mapping analysis. Journal of informetrics, 11(4), 959-975.
Beyer, A., Cohen, D. A., Lys, T. Z., & Walther, B. R. (2010). The financial reporting environment: Review of the recent literature. Journal of accounting and economics, 50(2-3), 296-343.
Boland, J. E., & Queen, R. (2016). If you’re house is still available, send me an email: Personality influences reactions to written errors in email messages. PloS one, 11(3), 1-17.
Bonsall, S. B., Leone, A. J., Miller, B. P., & Rennekamp, K. (2017). A plain English measure of financial reporting readability. Journal of Accounting and Economics, 63(2-3), 329-357.
Borges, G., & Rech, I. J. (2019). Determinantes da legibilidade das notas explicativas de companhias brasileiras. Revista de Gestão, Finanças e Contabilidade, 9(3), 31-51.
Bourveau, T., & Schoenfeld, J. (2017). Shareholder activism and voluntary disclosure. Review of Accounting Studies, 22(3), 1307-1339.
Brandenburg, L. C. (2015). Testing the recognition and perception of errors in context. Business and Professional Communication Quarterly, 78(1), 74-93.
Brown, N. C., Crowley, R. M., & Elliott, W. B. (2020). What are you saying? Using topic to detect financial misreporting. Journal of Accounting Research, 58(1), 237-291.
Buehlmaier, M. M., & Whited, T. M. (2018). Are financial constraints priced? Evidence from textual analysis. The Review of Financial Studies, 31(7), 2693-2728.
Campbell, D., Loumioti, M., & Wittenberg-Moerman, R. (2019). Making sense of soft information: Interpretation bias and loan quality. Journal of Accounting and Economics, 68(2-3), 18-110.
Chung, S. G., Goh, B. W., Ng, J., & Yong, K. O. (2017). Voluntary fair value disclosures beyond SFAS 157’s three-level estimates. Review of accounting studies, 22(1), 430-468.
Doupnik, T. S., & Richter, M. (2003). Interpretation of uncertainty expressions: a cross-national study. Accounting, Organizations and Society, 28(1), 15-35.
Dyer, T., Lang, M., & Stice-Lawrence, L. (2017). The evolution of 10-K textual disclosure: Evidence from Latent Dirichlet Allocation. Journal of Accounting and Economics, 64(2-3), 221-245.
Elfeky, M. I. (2017). The extent of voluntary disclosure and its determinants in emerging markets: Evidence from Egypt. The Journal of Finance and Data Science, 3(1-4), 45-59.
Erickson, D., Holderness Jr, D. K., Olsen, K. J., & Thornock, T. A. (2022). Feedback with feeling? How emotional language in feedback affects individual performance. Accounting, Organizations and Society, 99, 101329.
Everard, A., & Galletta, D. F. (2005). How presentation flaws affect perceived site quality, trust, and intention to purchase from an online store. Journal of Management Information systems, 22(3), 56-95.
Frankel, R., Jennings, J., & Lee, J. (2016). Using unstructured and qualitative disclosures to explain accruals. Journal of Accounting and Economics, 62(2-3), 209-227.
Galbraith, P., & Stillman, G. (2006). A framework for identifying student blockages during transitions in the modelling process. ZDM, 38(2), 143-162.
Gao, Q., Lin, M., & Sias, R. W. (2018). Words matter: The role of texts in online credit markets. Journal of Financial and Quantitative Analysis, forthcoming, 01-58.
Ghose, A., & Ipeirotis, P. G. (2010). Estimating the helpfulness and economic impact of product reviews: Mining text and reviewer characteristics. IEEE transactions on knowledge and data engineering, 23(10), 1498-1512.
Gillette, J., & Pundrich, G. (2020). Grammatical Violations and Financial Reporting Quality. Available at SSRN 3496434. Recuperado de https://ssrn.com/abstract=3496434
Gomes, A. C., de Macedo, H. C., & da Costa Marques, J. A. V. (2018). Efeitos da estrutura de capital sobre o gerenciamento de resultados contábeis no mercado brasileiro de capitais. Sistemas & Gestão, 13(4), 469-481.
Gkikas, D. C., Tzafilkou, K., Theodoridis, P. K., Garmpis, A., & Gkikas, M. C. (2022). How do text characteristics impact user engagement in social media posts: Modeling content readability, length, and hashtags number in Facebook. International Journal of Information Management Data Insights, 2(1), 1-9.
Grant, S. M., Hodge, F. D., & Sinha, R. K. (2018). How disclosure medium affects investor reactions to CEO bragging, modesty, and humblebragging. Accounting, Organizations and Society, 68, 118-134.
Gubala, C., Larson, K., & Melonçon, L. (2020). Do writing errors bother professionals? An analysis of the most bothersome errors and how the writer’s ethos is affected. Journal of Business and Technical Communication, 34(3), 250-286.
Haniffa, R. M., & Cooke, T. E. (2005). The impact of culture and governance on corporate social reporting. Journal of Accounting and Public Policy, 24(5), 391-430.
Hargittai, E. (2006). Hurdles to information seeking: Spelling and typographical mistakes during users' online behavior. Journal of the Association for Information Systems, 7(1), 1-16.
Helms, N., Hölscher, R., Nelde, M., & Schneider, J. (2021). The quality of risk reports: Integrating requirement levels of standard setters into text analysis. Journal of Corporate Accounting & Finance, 32(3), 7-23.
Hoberg, G., & Maksimovic, V. (2015). Redefining financial constraints: A text-based analysis. The Review of Financial Studies, 28(5), 1312-1352.
Hucks, R. J. (2015). Voluntary Involuntary Disclosure. Unpublished Doctoral Thesis, Doctor of Philosophy (Business Administration), Universidade de Michigan. Ann Arbor, Estados Unidos da América.
Izco, M. Á., Cabestre, R. F. J., & Olalla, R. C. (2021). Readabilty in management reports: extension and good governance practices: La legibilidad en los informes de gestión: extensión y buenas prácticas de gobierno corporativo. Revista de Contabilidad-Spanish Accounting Review, 24(1), 19-30.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360.
Kettunen, J. (2017). Interlingual translation of the International Financial Reporting Standards as institutional work. Accounting, Organizations and Society, 56, 38-54.
Kim, J., Kim, Y., & Zhou, J. (2017). Languages and earnings management. Journal of Accounting and Economics, 63(2-3), 288-306.
Kreiner, D. S., Schnakenberg, S. D., Green, A. G., Costello, M. J., & McClin, A. F. (2002). Effects of spelling errors on the perception of writers. The Journal of general psychology, 129(1), 5-17.
Lehavy, R., Li, F., & Merkley, K. (2011). The effect of annual report readability on analyst following and the properties of their earnings forecasts. The Accounting Review, 86(3), 1087-1115.
Li, F. (2008). Annual report readability, current earnings, and earnings persistence. Journal of Accounting and economics, 45(2-3), 221-247.
Li, Y. (2017). Voluntary disclosure and investment in environmental technology. Journal of Economic Behavior & Organization, 133, 331-341.
Liu, S., Wei, K., & Gao, B. (2022). Power of information transparency: How online reviews change the effect of agglomeration density on firm revenue. Decision Support Systems, 153, 1-13.
Lo, K., Ramos, F., & Rogo, R. (2017). Earnings management and annual report readability. Journal of accounting and Economics, 63(1), 1-25.
Macias-Chapula, C. A. (1998). O papel da informetria e da cienciometria e sua perspectiva nacional e internacional. Ciência da informação, 27(2), 134-140.
Morioka, S. N., Iritani, D. R., Ometto, A. R., & Carvalho, M. M. D. (2018). Revisão sistemática da literatura sobre medição de desempenho de sustentabilidade corporativa: uma discussão sobre contribuições e lacunas. Gestão & Produção, 25, 284-303.
Moher, D., Liberati, A., Tetslaff, J., & Altman, D. G. (2009). Preferred reporting items for systematic reviews and meta-analyses: The PRISMA Statement. Annals of Internal Medicine, 151(4), 264-269.
Morioka, S. N., Iritani, D. R., Ometto, A. R., & Carvalho, M. M. D. (2018). Revisão sistemática da literatura sobre medição de desempenho de sustentabilidade corporativa: uma discussão sobre contribuições e lacunas. Gestão & Produção, 25, 284-303.
Nascimento, J. F., & Henz, R. R. (2021). A ortografia e os níveis de escrita: o erro em textos de sujeitos escolarizados. Confluência: Revista do Instituto de Língua Portuguesa, (61), 226-248.
Queen, R., & Boland, J. E. (2015). I think your going to like me: Exploring the role of errors in email messages on assessments of potential housemates. Linguistics Vanguard, 1(1), 283-293.
Scheld, D., Stolper, O., & Walter, A. (2021). Double Dutch finally fixed? A large-scale investigation into the readability of mandatory financial product information. Journal of Consumer Policy, 44(2), 151-178.
Sethuraman, M. (2019). The effect of reputation shocks to rating agencies on corporate disclosures. The Accounting Review, 94(1), 299-326.
Scott, G. G., Sinclair, J., Short, E., & Bruce, G. (2014). It's not what you say, it's how you say it: language use on Facebook impacts employability but not attractiveness. Cyberpsychology, Behavior, and Social Networking, 17(8), 562-566.
Si, H., Jiang, S., Fang, Y., & Usman, M. (2020). Can readability of loan description affect loan success rate and loan cost?: A textual analysis of P2P loan description. Engineering Economics, 31(3), 302-313.
Silva, C. A. T., & Fernandes, J. L. T. (2009). Legibilidade dos fatos relevantes no Brasil. Revista de Administração Contemporânea-RAC Electronica, 3(1), 142-159.
Shore, T., Tashchian, A., & Forrester, W. R. (2021). The influence of resume quality and ethnicity cues on employment decisions. Journal of Business Economics and Management, 22(1), 61-76.
Tennyson, B. M., Ingram, R. W., & Dugan, M. T. (1990). Assessing the information content of narrative disclosures in explaining bankruptcy. Journal of Business Finance & Accounting, 17(3), 391-410.
Voigt, F. H., Machado, J. V., & Meurer, A. M. (2020). Nível de evidenciação de custos e investimentos ambientais e legibilidade dos relatórios da administração de empresas do setor de papel e celulose. Revista Mineira de Contabilidade, 21(3), 51-62.
Wang, C., Brabenec, T., Gao, P., & Tang, Z. (2021). The Business Strategy, Competitive Advantage and Financial Strategy: A Perspective from Corporate Maturity Mismatched Investment. Journal of Competitiveness, 13(1), 164-181.
Williams, J. M. (1981). The phenomenology of error. College composition and communication, 32(2), 152-168.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Journal of Education and Research in Accounting (REPeC)
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Authors who publish with this journal agree to the following terms:
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under Creative Commons Attribution 3.0 Unported License, which allows the sharing of the work and recognition of authorship and its initial publication in this journal. This license allows others to distribute, remix, adapt, or create derivative works, even for commercial purposes, provided credit is given for the original creation.
b)There is no financial compensation to the authors in any capacity, for articles published in RePEc.c) The articles published in RePEc are the sole responsibility of the authors.
