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Real Estate Companies’ Communication in Annual Reports During Economic Downturns Compared with Economic Booms

Sorani, Ares LU (2026) FEKH69 20252
Department of Business Administration
Abstract
Purpose:
The purpose of this study is to analyze how tone and language use in CEO letters in the annual reports of Swedish listed real estate companies vary between economic upturns and downturns, and to examine how the narrative presentation during economic downturns relates to the companies’ financial key performance indicators. The study takes its point of departure in the real estate sector’s high sensitivity to economic cycles and its significance for the capital market.

Method:
The study is conducted using a qualitative research approach and an abductive research strategy. The empirical material consists of CEO letters from the annual reports of four Swedish listed real estate companies across two distinct economic phases: a... (More)
Purpose:
The purpose of this study is to analyze how tone and language use in CEO letters in the annual reports of Swedish listed real estate companies vary between economic upturns and downturns, and to examine how the narrative presentation during economic downturns relates to the companies’ financial key performance indicators. The study takes its point of departure in the real estate sector’s high sensitivity to economic cycles and its significance for the capital market.

Method:
The study is conducted using a qualitative research approach and an abductive research strategy. The empirical material consists of CEO letters from the annual reports of four Swedish listed real estate companies across two distinct economic phases: a period of economic expansion (2017–2019) and a period of economic downturn (2022–2024). The analysis is based on a systematic qualitative document analysis in which the text material is coded and thematically analyzed using a theoretically grounded coding scheme. The interpretive framework is based on legitimacy theory, signaling theory, and impression management, which are used to analyze how language use, tone, and narrative strategies are adapted to changing macroeconomic conditions.

Conclusion:
The study shows that CEO statements in real estate companies undergo a systematic change in both tone and linguistic framing depending on the economic climate. During periods economic expansion, communication is dominated by expansion-oriented narratives, in which growth and future opportunities are portrayed as the result of internal strengths. In periods of economic downturn, communication is reshaped to emphasize financial resilience, risk awareness, and long-term responsibility. At the same time, the findings indicate that the narrative presentation during downturns only partially reflects financial performance. While stable operational key figures are highlighted to support the image of a well-functioning core
business, negative accounting outcomes are mitigated or explained through external
attributions and legitimizing language. Overall, the results suggest that CEO statemnet functions as a strategic tool for managing uncertainty, preserving trust, and influencing the capital market’s interpretation of companies’ financial conditions across business cycles. (Less)
Popular Abstract (Swedish)
Syfte:
Syftet med min studie var att analysera hur tonalitet och språkbruk i VD-ord i svenska börsnoterade fastighetsföretags årsredovisningar varierar mellan hög- och
lågkonjunktur, samt att undersöka hur den narrativa framställningen under
lågkonjunktur förhåller sig till företagens finansiella nyckeltal. Studien hade sin
utgångspunkt i fastighetssektorns höga konjunkturkänslighet och betydelse för
kapitalmarknaden.

Metod:
Studien genomfördes med en kvalitativ metod och en abduktiv forskningsansats. Det
empiriska materialet utgörs av VD-ord i årsredovisningar från fyra svenska
börsnoterade fastighetsbolag under två skilda konjunkturfaser: en
högkonjunkturperiod (2017–2019) och en lågkonjunkturperiod (2022–2024).
Analysen... (More)
Syfte:
Syftet med min studie var att analysera hur tonalitet och språkbruk i VD-ord i svenska börsnoterade fastighetsföretags årsredovisningar varierar mellan hög- och
lågkonjunktur, samt att undersöka hur den narrativa framställningen under
lågkonjunktur förhåller sig till företagens finansiella nyckeltal. Studien hade sin
utgångspunkt i fastighetssektorns höga konjunkturkänslighet och betydelse för
kapitalmarknaden.

Metod:
Studien genomfördes med en kvalitativ metod och en abduktiv forskningsansats. Det
empiriska materialet utgörs av VD-ord i årsredovisningar från fyra svenska
börsnoterade fastighetsbolag under två skilda konjunkturfaser: en
högkonjunkturperiod (2017–2019) och en lågkonjunkturperiod (2022–2024).
Analysen bygger på en systematisk kvalitativ dokumentanalys där textmaterialet
kodas och analyseras tematiskt utifrån ett teoretiskt förankrat kodschema.
Tolkningsramen utgörs av legitimitetsteori, signaleringsteori och impression
management, vilka används för att analysera hur språkbruk, tonalitet och narrativa
strategier anpassas till förändrade makroekonomiska förutsättningar.


Slutsats:
Studiens slutsats visar att fastighetsföretags VD-ord anpassas systematiskt efter
konjunkturläget. I högkonjunktur betonas tillväxt och interna styrkor, medan
lågkonjunktur präglas av fokus på finansiell stabilitet, riskmedvetenhet och långsiktigt ansvar. Samtidigt speglar kommunikationen i lågkonjunktur endast delvis den faktiska finansiella utvecklingen, där negativa utfall ofta förklaras med externa faktorer. Sammantaget används VD-ord strategiskt för att hantera osäkerhet och upprätthålla förtroende över konjunkturcykler. (Less)
Please use this url to cite or link to this publication:
author
Sorani, Ares LU
supervisor
organization
alternative title
Fastighetsföretags kommunikation i årsredovisningar under lågkonjunktur jämfört med högkonjunktur
course
FEKH69 20252
year
type
M2 - Bachelor Degree
subject
keywords
Economic boom, Economic downturn, CEO statement, Tone, Accounting information, Narrative reporting
language
Swedish
id
9221138
date added to LUP
2026-02-17 14:43:26
date last changed
2026-02-17 14:43:26
@misc{9221138,
  abstract     = {{Purpose:
The purpose of this study is to analyze how tone and language use in CEO letters in the annual reports of Swedish listed real estate companies vary between economic upturns and downturns, and to examine how the narrative presentation during economic downturns relates to the companies’ financial key performance indicators. The study takes its point of departure in the real estate sector’s high sensitivity to economic cycles and its significance for the capital market.

Method:
The study is conducted using a qualitative research approach and an abductive research strategy. The empirical material consists of CEO letters from the annual reports of four Swedish listed real estate companies across two distinct economic phases: a period of economic expansion (2017–2019) and a period of economic downturn (2022–2024). The analysis is based on a systematic qualitative document analysis in which the text material is coded and thematically analyzed using a theoretically grounded coding scheme. The interpretive framework is based on legitimacy theory, signaling theory, and impression management, which are used to analyze how language use, tone, and narrative strategies are adapted to changing macroeconomic conditions.

Conclusion:
The study shows that CEO statements in real estate companies undergo a systematic change in both tone and linguistic framing depending on the economic climate. During periods economic expansion, communication is dominated by expansion-oriented narratives, in which growth and future opportunities are portrayed as the result of internal strengths. In periods of economic downturn, communication is reshaped to emphasize financial resilience, risk awareness, and long-term responsibility. At the same time, the findings indicate that the narrative presentation during downturns only partially reflects financial performance. While stable operational key figures are highlighted to support the image of a well-functioning core
business, negative accounting outcomes are mitigated or explained through external
attributions and legitimizing language. Overall, the results suggest that CEO statemnet functions as a strategic tool for managing uncertainty, preserving trust, and influencing the capital market’s interpretation of companies’ financial conditions across business cycles.}},
  author       = {{Sorani, Ares}},
  language     = {{swe}},
  note         = {{Student Paper}},
  title        = {{Real Estate Companies’ Communication in Annual Reports During Economic Downturns Compared with Economic Booms}},
  year         = {{2026}},
}