HomeAbstract of 12th-icbmeconfChairman’s Statement Tone, Firm Performance, and Valuation Across GCC Markets: A Comparative Study

Chairman’s Statement Tone, Firm Performance, and Valuation Across GCC Markets: A Comparative Study

  • Jun 10, 2026
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Abstract Book of the 12th International Conference on Business, Management and Economics

Year: 2026

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Chairman’s Statement Tone, Firm Performance, and Valuation Across GCC Markets: A Comparative Study

Bader Alibrahim

ABSTRACT:

Purpose- Chairperson statements are a key component of annual reports, allowing managers to offer their unaudited views on the firm’s prospects and its performance. The tone of such statements may reflect underlying performance or be used strategically to obscure weaker outcomes. This study examines the relationship between chairperson statement tone and firm profitability and further investigates whether tone influences firm valuation. The analysis is conducted across Gulf Cooperation Council (GCC) markets, including a cross-country comparison.
Design/methodology/approach-. The study uses a sample of 519 firm-year observations from non-financial firms listed across GCC stock exchanges over the period 2021-2024. Chairperson statements are collected using a Python-based web crawler adapted from Ashraf (2017). Narrative tone is measured using the Loughran-McDonald financial dictionary. Panel regressions with firm year and fixed effects are employed, incorporating profitability measures (ROA and Profit Margin) and Tobin’s Q as a proxy for firm valuation.
Findings- The results provide partial support for a positive association between firm profitability and optimistic tone, consistent with signalling theory. However, no significant relationship is found between tone and firm valuation. Evidence also reveals substantial cross-country variation, suggesting heterogeneity in disclosure practises across GCC markets.
Originality- This study extends the literature by providing novel evidence from the GCC context and is among the first to conduct a cross-country comparison of chairperson statement tone, highlighting differences in disclosure practices across the region.

Keywords: Chairperson Statement Tone; Narrative Disclosures; Gulf Cooperation Council; Emerging Markets; Impression Management; Signalling Theory