This study investigates the impact of the COVID-19 pandemic on the tone of annual reports, focusing on the personal and behavioural attributes of Chief Executive Officers (CEOs).
We analysed 360 companies listed on the Tehran Stock Exchange from 2016 to 2021, distinguishing between pre-COVID (2016–2018) and post-COVID (2019–2021) periods. Multivariate regression techniques with year and industry-fixed effects were employed.
The results reveal a significant negative impact of COVID-19 on managers’ disclosure tone. CEO tenure and ability exacerbate this impact, while CEO myopia, narcissism, and overconfidence mitigate it. CEO gender and duality do not significantly moderate the effect of COVID-19 on abnormal tone.
This pioneering research is the first to examine the impact of COVID-19 on managers’ abnormal tone through a behavioural lens, offering insights into the interplay of CEO attributes and disclosure practices during a global crisis.
