Measuring the tone of accounting and financial narrative

Elaine Henry; Andrew J. Leone

doi:10.4018/978-1-4666-4999-6.ch003

Measuring the tone of accounting and financial narrative

Elaine Henry^*, Andrew J. Leone

^*Corresponding author for this work

Accounting Information and Management

Research output: Chapter in Book/Report/Conference proceeding › Chapter

3 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 language	English (US)
Title of host publication	Communication and Language Analysis in the Corporate World
Publisher	IGI Global
Pages	36-47
Number of pages	12
ISBN (Electronic)	9781466650008
ISBN (Print)	1466649992, 9781466649996
DOIs	https://doi.org/10.4018/978-1-4666-4999-6.ch003
State	Published - Jan 31 2014

ASJC Scopus subject areas

General Economics, Econometrics and Finance
General Business, Management and Accounting

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Measuring the tone of accounting and financial narrative

Abstract

ASJC Scopus subject areas

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