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This study examines the content of president's letters of high and low performing firms in an effort to discover patterns in communication strategy.. Preliminary analysis of president's letters of the top and bottom 25 firms of the Fortune 500 based on return on equity revealed six recurring themes: (a) Environment, (b) Growth, (c) Operating Philosophy, (d) Markets and Products, (e) Unfavorable Financial Reference, and (f) Favorable Financial Reference. Results indicate that high and low performing firms can be correctly classified based on themes emphasized in their respective presidents' letters. Low performing firms were correctly classified more frequently than high performing firms and both groups placed predominant emphasis on the past. These findings suggest that financial performance influences the manner in which CEOs report annual corporate results.
Kohut et al. (Wed,) studied this question.