This paper explores the role of language (tone and readability) in financial disclosures in detecting a firm …'s likelihood of violating the FCPA. Matching FCPA violators with a control sample of non-violators, we examine whether the tone and … the management of FCPA violators uses more negative, uncertain, litigious, and complex language when disclosing financials …

that can be reduced by highlighting concrete language in disclosures. Our results show that, when abstract language is … foreign firm, but that highlighting concrete language mitigates this bias. Drawing on psychology theory, we predict and find … that the debiasing effect of highlighting concrete language operates via investors' subjective feelings of comfort with …