Importance The form of annual financial statements presentation by the company management to a great extent depends on conditions impacting the financial position of the company at the time of reporting. The article investigates the reaction of management to these conditions and the way it expresses its opinion about the company's current position and development prospects. Objectives The goal is to analyze relationships between the quality of management's narrative disclosures in financial reviews within annual reports and the company's financial position, and to consider the effect of the risk of bankruptcy. Methods The study employs methods of semantic analysis of the texts of the reports and the correlation analysis. Results The paper summarizes the results of semantic analysis to determine the management opinion about the company's ability to create value in the short, medium and long term. It also presents the results of correlation of companies’ financial ratios and the management opinion about the company's financial standing. Conclusions Companies with stable financial position present more transparent corporate information; and information disclosure of companies with aggravating financial situation is of low quality. I offer recommendations for improving the quality of information to be disclosed.
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