This study develops, implements, and evaluates a multi-label text classification algorithm that extracts textual information from the annual reports of all publicly listed USA companies. Specifically, the proposed system can automatically identify 25 types of frequently mentioned risk factors in...

This study develops, implements, and evaluates a multi-label text classification algorithm called the multi-label categorical K - nearest neighbor (ML-CKNN). The proposed algorithm is designed to automatically identify 25 types of risk factors with specific meanings reported in Section 1A of SEC...

This paper surveys the theoretical and empirical literature on the economic consequences of financial reporting and disclosure regulation. We integrate theoretical and empirical studies from accounting, economics, finance and law in order to contribute to the cross-fertilization of these fields....

In our model, informed players decide whether or not to disclose, and observers allocate attention among disclosed signals, and toward reasoning through the implications of a failure to disclose. In equilibrium disclosure is incomplete, and observers are unrealistically optimistic. Nevertheless,...

As an important indicator of earnings quality, earning persistence is perceived as the reflection of operation management and the quality of internal control. It facilitates the optimization of resource allocation and provides investors valuable insights. Strategy is described as the long-term...

Prior research generally interprets complex language in firms' disclosures as indicative of managerial obfuscation. However, complex language can also reflect the provision of complex information, e.g., informative technical disclosure. As a consequence, linguistic complexity commingles two...

Prior research generally interprets complex language in firms' disclosures as indicative of managerial obfuscation. However, complex language can also reflect the provision of complex information; for example, informative technical disclosure. As a consequence, linguistic complexity commingles...

This study examines whether managers strategically alter disclosure ldquo;qualityrdquo; in response to personal incentives, specifically those derived from trading on their own account. Using changes in market liquidity to proxy for disclosure quality, I find that trading incentives are...

We explore how the readability of annual reports varies with earnings management. Using the Fog Index to measure readability (Li 2008), and focusing on the management discussion and analysis section of the annual report (MD&A), we predict and find that firms most likely to have managed earnings...

This paper examines the relationship between annual report readability and firm performance and earnings persistence. This is motivated by the Securities and Exchange Commission's plain English disclosure regulations that attempt to make corporate disclosures easier to read for ordinary...