Thankfully for our industry and for our environment, sustainability is no longer just a buzzword. It is a very real and growing commitment toward process improvements that lessen the forest and paper industries’ impact on the environment. We at Roses believe that all of us, whether manufacturer, distributor, or consumer, must maintain that devotion toward earnest and ongoing examinations of our sourcing, production or purchasing decisions to ensure that together we lead the environmental conscience of our industry rather than lag behind as changes are made.
How does the cultural background of executives affect the way in which they communicate with investors? This paper examines the impact of cultural backgrounds of individual managers based on their ethnic heritage on their disclosure narrative during earnings conference calls. Among the findings, managers from individualistic cultures are likely to use a more positive tone, use greater self-reference, and make fewer apologies in the Q&A portion of the conference calls. The capital market reacts to disclosure style in a predictable way: optimistic tone is associated with a positive stock return following the call. However, market participants do not adjust their interpretation of disclosure tone for firm value based on the cultural background of the management team.