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This narrative disclosure approach would be in line with the format of existing disclosure requirements relating to executive compensation.
We suggest that the SEC should revisit this decision and mandate a narrative disclosure approach that provides information about median worker pay and the resulting pay ratio with more context, nuance, and explanation.
The Investor Environmental Health Network has proposed to the FASB that while it may be difficult to quantify such "severe, long-term, remote liabilities," the narrative disclosure in the footnotes to financial statements should inform readers of these types of contingencies, and should track the kinds of disclosures described above for the MD&A.
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We test whether investors react more strongly to narrative disclosures when the CEO's presence or association with the message is more salient in the disclosure, holding all other information constant.
The footnote also must include the narrative disclosures specified in paragraphs (i)(9) and (i)(10) of this section.
"Communism of the Will: Narrative Disclosures of a Mexican American Farm Worker". Lineages of the Literary Left: A Symposium in Honor of Alan M. Wald.
In this commentary on "Do features that associate managers with a message magnify investor's reactions to narrative disclosures?" by Asay, Libby, and Rennekamp (2018), I discuss issues regarding the experimental methods commonly used to study the effects of narrative financial disclosures.
While the above example relates principally to narrative disclosures, a second example relates to development and disclosure of quantitative estimates that would nevertheless be more probative than prejudicial, and therefore merit mandatory disclosure rules.
Below, I provide examples of such information, first, in the realm of "narrative" disclosures, as found in the MD&A, and second, in liability estimates, as required under existing and proposed financial accounting standards.
Issuers must make semi-annual and annual filings with the SEC that include audited financial statements for the two most recent years, along with narrative disclosures.
She is currently working on a project focused on narrative and disability disclosure.
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