Assessing Impression Management Using a Narrative Reporting Index: Evidence from the Top 40 JSE-Listed Companies

This study responds to the call to apply the Impression Management Narrative Reporting (IMNR) Index to a larger sample, extending its application to the top 40 JSE-listed companies in South Africa. While prior literature has established the presence of impression management (IM) in narrative reports of JSE-listed companies, no study has quantitatively measured its level using multiple IM tactics combined into a single metric. Using content analysis, secondary data were collected from CEO letters to shareholders in annual or integrated reports. A purposive sample of 26 companies was analysed following the IMNR Index methodology. The findings reveal a median IMNR score of 5.20 (out of 8), indicating high levels of IM. Tone manipulation emerged as the dominant tactic (median 0.90), followed by rhetoric (0.83) and readability (0.81), while comparison was the least used tactic (0.38). These results confirm that CEOs of JSE-listed companies engage in IM strategies, consistent with Agency Theory and Signalling Theory. The study demonstrates the practical relevance of the IMNR Index in emerging market contexts and contributes to the literature by providing quantitative evidence of IM prevalence in CEO communications. Investors should approach CEO letters with scepticism, as high IM levels and tone manipulation may obscure underlying performance. Regulators should consider enhanced disclosure guidelines and potential assurance requirements for narrative reports. Audit committees must exercise active formal oversight to ensure integrity, balance, and faithful representation in these disclosures.