TETLOCK, PAUL C.; SAAR-TSECHANSKY, MAYTAL; MACSKASSY, SOFUS - In: Journal of Finance 63 (2008) 3, pp. 1437-1467
We examine whether a simple quantitative measure of language can be used to predict individual firms' accounting earnings and stock returns. Our three main findings are: (1) the fraction of negative words in firm-specific news stories forecasts low firm earnings; (2) firms' stock prices briefly...