This paper studies central bank communication of the ECB as a potential factor that explains the contribution to systemic risk for a panel of large banks in the Eurozone between 2002 and 2018. The empirical evidence suggests that the ECB is able to use central bank communication to effectively...

In this study, we examine whether and how tone management affects future stock price crash risk, measured as the conditional skewness of firm-specific returns. We document a positive relationship between tone management and one-year-ahead crash risk. The relationship is more pronounced for firms...

In this study, we examine the predictability of firm-specific stock price crashes using modern machine learning techniques and develop a crash prediction model that utilizes both financial ratios and textual data from the Management Discussion and Analysis (MD&A) of 10-K files. We show that...