International Journal of Sub-Saharan African Research (IJSSAR)

Background: Forward-looking disclosure (FLD) provides stakeholders with information about firms’ future prospects, risks and performance. However, its discretionary nature creates opportunities for managers to shape stakeholder perceptions through selective reporting.
Objective: This study systematically reviews empirical evidence on FLD, focusing on its impression management function and the conditions under which future-oriented disclosures may serve strategic managerial interests.
Method: Following PRISMA 2020 guidelines, Scopus and Web of Science were searched for empirical, peer-reviewed studies published between 2009 and 2025. Following screening and eligibility assessment, 20 studies were included in the final synthesis. Results: The findings indicate that optimistic disclosure tone, selective information presentation and strategic framing can facilitate impression management, particularly when firms experience deteriorating performance, or managers have incentives to portray corporate prospects favourably. However, the impression management function of FLD depends on firm performance, managerial incentives, disclosure characteristics, subsequent outcomes and institutional context.
Conclusion: This review synthesises fragmented empirical evidence and shifts the discussion from whether FLD constitutes impression management to the conditions under which it is more likely to occur.
Key Recommendation: Regulators, standard-setters and corporate governance practitioners should strengthen disclosure guidance and monitoring to promote balanced, credible and decision-useful reporting while discouraging selectively optimistic and potentially misleading disclosures.