Do changes in MD&A section tone predict investment behavior?

John P. Berns · Patty Bick · Ryan Flugum · Reza Houston

39 citations0/0 files storedFinancial Review

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Auditing, Earnings Management, Governance Corporate Finance and Governance Financial Analysis and Corporate Governance

Abstract

Abstract We find that changes in managerial tone predict firm corporate investment activities. Tone changes within the Management Discussion and Analysis section of the 10‐K are positively related to subsequent capital investments and M&A activity. We find the predictive content of tone changes to be present at the firm and industry‐levels, and when accounting for alternative sources of incremental information associated with firm investment activities. Our findings broaden the scope of information encapsulated by changes in financial statement tone.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 39 citations exist upstream.

References

1970The Market for "Lemons": Quality Uncertainty and the Market Mechanism 2001The role of positive emotions in positive psychology: The broaden-and-build theory of positive emotions.2016Measuring Economic Policy Uncertainty*2008Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches 1990Government Spending in a Simple Model of Endogeneous Growth 1998What Good Are Positive Emotions?2011When Is a Liability Not a Liability? Textual Analysis, Dictionaries, and 10‐Ks 1969A General Equilibrium Approach To Monetary Theory

Cited by

2023Does peer firms’ tone affect corporate investment? Evidence from China 2022Textual Emotional Tone and Financial Crisis Identification in Chinese Companies: A Multi-Source Data Analysis Based on Machine Learning 2023The influence of peers' MD&A tone on corporate cash holdings 2024The effects of manager sentiment in financial disclosure: Perspectives of operational efficiency and market reaction

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.