Measuring Readability in Financial Disclosures

By Tim Loughran, Bill McDonald. 2013

538 citations recorded by the source corpus.

Subfields: Accounting, Finance, Management Information Systems

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Citations in the corpus

Textual Sentiment in Finance: A Survey of Methods and Models (2014, neutral): “Henry and Leone (2009), Loughran and McDonald (2011a) and Jegadeesh and Wu (2012)”
Guiding Through the Fog: Financial Statement Complexity and Voluntary Disclosure (2016, unknown): “15 Results are robust to using electronic file size of the 10-K filing to measure financial statement complexity (Loughran and McDonald, 2014), and to including Length as an additional variable in the construction of ReadIndex.”
A Plain English Measure of Financial Reporting Readability (2017, background): “The results in Column (2) are consistent with Loughran and McDonald (2014) as the coefficient on Log(Total File Size) is positive and significant (t-statistic=3.”
Hear Me Write: Does CEO Narcissism Affect Disclosure? (2019, methodology): “…number of highly cited studies have since used this methodology to measure tone of financial texts, and for consistency and reliability we follow the literature for this key variable in our study (e.g., Twedt and Rees 2012; Jegadeesh and Wu 2013; Liu and McConnell 2013; Loughran and McDonald 2014).”
The Evolution of 10-K Textual Disclosure: Evidence from Latent Dirichlet Allocation (2017, methodology): “…textual characteristics that have been identified by prior research as potentially affecting the informativeness of disclosure, including length ( Loughran and McDonald, 2014 ), readability ( Miller, 2010 ), boilerplate ( Lang and Stice-Lawrence, 2015 ), redundancy ( Cazier and Pfeiffer, 2015b…”
Rumor Has It: Sensationalism in Financial Media (2015, background): “%) documented in Loughran and McDonald (2011, 2013) As expected, the text of merger rumors is more speculative than that of financial disclosures.”
Publishing while Female. Are women held to higher standards? Evidence from peer review. (2017, background): “36 Evidence suggests theymay not be accurate enough to adequately assess or guide development of legal briefs (Sirico, 2007), financial disclosure documents (Loughran and McDonald, 2014) or school reading material (Ardoin et al.”
The Economics of Disclosure and Financial Reporting Regulation: Evidence and Suggestions for Future Research (2015, methodology): “By aggregating across measures, these studies attempt to obtain a less specific (or summary) measure 19 See also Das (2014) and Loughran and McDonald (2014, 2016).”