Browsing by Subject "Textual analysis"

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    Management’s choice of tone in letters to shareholders : sincerity, bias and incentives
    (Universidad de Murcia, Servicio de Publicaciones, 2021) Hadro, Dominika; Klimczak, Karol Marek; Pauka, Marek
    This paper aims to identify the drivers of management reporting choices in a setting characterized by ownership concentration and weak enforcement. Previous research indicates, that tone of the letter to shareholders is correlated with performance. However, tone can be biased towards the positive when a company is highly responsive to stock market incentives or controlled by majority investors. Bias can be reduced by the monitoring activities of institutional investors in closely held companies. There are two major implications of the study. First, when managers bias the text, they lose the ability to communicate positive news about their company. Under rational expectations investors can detect bias based on known situational incentives and disregard the biased information. Second, the results suggest that managers manipulate tone strategically, rather than unconsciously, to satisfy the needs of key shareholder groups
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    Textual analysis and sentiment analysis in accounting
    (Universidad de Murcia, Servicio de Publicaciones, 2021) Gandía, Juan L.; Huguet, David
    In spite of the relatively scarce use of textual analysis and sentiment analysis techniques in finance and accounting, they have great potential in accounting, both because of the volume of documents used for the communication of information and due to the growth in the use of digital tools and social media. In that regard, these techniques of analysis may help researchers to analyse hidden clues or look for additional information to that one observed through financial information, increasing the quantity and quality of the information traditionally used, and providing a new perspective of analysis. The aim of this study is to review the use of textual analysis and sentiment analysis in accounting. After presenting the concepts of textual analysis and sentiment analysis and expose their interest in accounting, we perform a review of the previous literature on the use of these techniques in finance and accounting and describe the main techniques of sentiment analysis, as well as the procedure to be followed for the use of this methodology. Finally, we suggest three lines of future research that may benefit from the use of textual and sentiment analysis.