Impression Management in Polish Letters to Shareholders

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Abstract

We study impression management in an emerging market setting with high ownership concentration. We use content analysis to identify impression management techniques in a sample of letters to shareholders written in the Polish language by the 60 largest companies listed at the Warsaw Stock Exchange in 2008 and 2013. Then we employ cluster analysis to determine how impression management techniques co-occur. The majority of the letters fall into two categories: positive letters that praise the management and conquering adversity letters that explain how the management delivers performance in negative economic conditions. Finally, we use regression analysis and find that ownership concentration affects the length of the letter, unless the controlling shareholder is a foreign investor. Where non-controlling institutional shareholders are present, the letters are longer. Companies held by foreign investors tend to select a distinct mix of impression management techniques, as they are more likely to prepare conquering adversity letters than positive letters.

Authors

• Dominika Fijałkowska, Wroclaw University of Economics

• Karol Marek Klimczak, University of Navarra

• Marek Pauka, Wroclaw University of Economics