Regulatory reforms in the United States, such as Sarbanes-Oxley and Regulation Fair Disclosure, emphasize the significance of timely and transparent corporate reporting. Analysis of corporate financial disclosures using communication theory can provide useful information to stakeholders. Communication is a goal-directed activity that involves a purpose, and one of the central goals of communication for the corporation is to maintain a positive image. Benoit’s theory of image restoration says that management presents the messages (responses) that are instrumental in obtaining the firm’s goals. This article’s objectives are to summarize Benoit’s image restoration typology and to propose its potential use in analyzing management’s communication strategies in financial reporting. The authors provide examples from corporate U.S. Securities and Exchange Commission (SEC) and annual reports of computer companies to illustrate the use of various communication strategies based on Benoit’s typology.
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