Behavioural insights into CEO disclosure tone during COVID-19: an analysis of stock exchange companies

Purpose 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). Design/methodology/approach 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. Findings 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. Originality/value 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.