A recent path in the financial disclosure literature has aimed at uncovering information in the Notes (disclosures) of the financial statements through textual analysis (i.e. Loughran and McDonald, 2014, 2015, 2016). What you think are the advantages and disadvantages of textual analysis methods for uncovering information helpful in financial analysis from the Notes (disclosures) of the financial statements?
3.B. A recent path in the financial disclosure literature has aimed at uncovering
information in the Notes (disclosures) of the financial statements through textual
analysis (i.e. Loughran and McDonald, 2014, 2015, 2016). What you think are the
advantages and disadvantages of textual analysis methods for uncovering
information helpful in financial analysis from the Notes (disclosures) of the
financial statements?
Recommended Reference
Loughran, T., McDonald, B., 2014. Measuring Readability in Financial
Disclosures. The Journal of Finance 69, 1643-1671.
Loughran, T., McDonald, B., 2015. The Use of Word Lists in Textual Analysis.
Journal of Behavioral Finance 16, 1-11.
Loughran, T., McDonald, B., 2016. Textual Analysis in Accounting and Finance: A
Survey. Journal of Accounting Research 54, 1187-1230.
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