Does the management's disclosure tone mislead retail investors?
Quarterly Journal of Securities Exchange

Quarterly Journal of Securities Exchange

Does the management's disclosure tone mislead retail investors?

Document Type : Original Article

Authors
Azam pouryousof 1
Morteza Zakerian 2
mohsen moodi 3
zahra Masoumi Bilondi 4
1 Assistant Prof., Department of Accounting , Payame Noor University,Tehran, Iran.
2 Department of Accounting,,Birjand, Islamic Azad university,Birjand, Iran.
3 Department of Economics, Esfahan, Islamic Azad University,Esfahan, Iran.
4 2. Assistant Professor, Department of Accounting, Payame Noor University, Tehran, Iran
10.22034/jse.2025.12512.2320
Abstract
In the present study, the effect of the unusual tone of managers' disclosure with the unusual transactions of small shareholders is investigated. The relationship between the unusual tone of managers' disclosure and the volume of unusual transactions of minor and major shareholders indicates the information asymmetry between minor and major shareholders. Research tests have been conducted on 162 companies admitted to the Iran Stock Exchange during the years 2014 to 2023, and a total of 1,585 annual reports were reviewed by removing outliers. For testing of models using the multiple regression method, taking into account the fixed effects of year and industry. The results showed that the abnormal tone of managers has a positive relationship with the volume of abnormal transactions of minor shareholders and has no significant relationship with the volume of abnormal transactions of major shareholders. From the findings of the research, it can be concluded that small shareholders do not have the ability to process the biased tone of the managers, and with the unusual tone of the managers, they make unfavorable transactions and are so called misled.
Keywords
written tone
unusual tone
volume of transactions
net unusual purchase of shares
small shareholders
Subjects
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Quarterly Journal of Securities Exchange
Volume 18, Issue 71
Autumn 2025
Pages 237-272