Measuring the tone of accounting and financial narrative

Elaine Henry, Andrew Leone

Research output: Chapter in Book/Report/Conference proceedingChapter

1 Scopus citations

Abstract

Research in accounting and finance has measured the tone of financial narrative using word frequency counts based mainly on four different wordlists: 1) a wordlist developed in Henry's (2006, 2008) analysis of earnings announcements (Henry Wordlist); 2) a wordlist developed in Loughran and McDonald's (2011) analysis of 10-K filings (LM Wordlist); 3) a wordlist from DICTION (DICTION Wordlist) software developed by Roderick Hart; and 4) a wordlist from the General Inquirer program (GI Wordlist) developed by social psychologist Philip Stone. This chapter examines alternative measures of the tone of narrative in earnings press releases based on these word lists, explores the statistical relations among the alternative measures, and tests whether those relations vary depending on aspects of the earnings news being announced and other factors.

Original languageEnglish (US)
Title of host publicationCommunication and Language Analysis in the Corporate World
PublisherIGI Global
Pages36-47
Number of pages12
ISBN (Print)9781466650008, 1466649992, 9781466649996
DOIs
StatePublished - Jan 31 2014

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ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • Business, Management and Accounting(all)

Cite this

Henry, E., & Leone, A. (2014). Measuring the tone of accounting and financial narrative. In Communication and Language Analysis in the Corporate World (pp. 36-47). IGI Global. https://doi.org/10.4018/978-1-4666-4999-6.ch003