‘When Is a Liability Not a Liability’ Revisited: Should Financial Text Analysis Abandon General Lexicons?
By Brent Kitchens, D. Mitra, Joseph M. Johnson, Praveen Pathak. 2014
102 citations recorded by the source corpus.
Subfields: Accounting, Finance, Management Science and Operations Research
Citations in the corpus
- Textual Sentiment in Finance: A Survey of Methods and Models (2014, neutral): “Loughran and McDonald (2011a) find that almost three-fourths (73.8 percent) of the negative word counts in the GI/Harvard list are attributable to words that are typically not negative in a financial context.”
- Effects of an Advancing Tenure on CEO Cognitive Complexity (2020, unknown): “To gauge this, we used a composite of dictionaries from Loughran and McDonald (2011) and LIWC 2015.”
- It Pays to Write Well (2017, unknown): “” Our legal words list is distinct from word lists that aim to capture litigation risk and that include terms such as “felony, jury, trial” (Loughran and McDonald, 2011).”
- Readability of 10‐K Reports and Stock Price Crash Risk (2019, unknown): “…of the reports, such as the Management Discussion and Analysis, provide investors with new and important supplementary information (Brown and Tucker 2011; Feldman et al. 2010; Griffin 2003; Jegadeesh and Wu 2013; Kothari et al. 2009a; Li 2010a; Loughran and McDonald 2011; You and Zhang 2009).”
- The impact of narrative disclosure readability on bond ratings and the cost of debt (2017, unknown): “K filing using word lists from Loughran and McDonald (2011) UNCERTAIN = Uncertain words divided by total words in the 10-”
- Evidence on the Information Content of Text in Analyst Reports (2014, unknown): “These accuracy rates are greater than the accuracy rate of 62.02 percent and 65.44 percent obtained from the financial dictionaries of Loughran and McDonald (2011) and Henry (2006), respectively, in classifying analyst reports.”
- How are shorts informed (2012, unknown): “The first sentiment variable is constructed using the Harvard-IV-4 dictionary as in Tetlock (2007) and Engelberg (2008), while the second sentiment measure uses the negative word list developed by Loughran and McDonald (2011).”