The evolution of 10-K textual disclosure: Evidence from Latent Dirichlet Allocation

Dyer, Travis; Lang, Mark H.; Stice‐Lawrence, Lorien

doi:10.1016/j.jacceco.2017.07.002

Cited by 609 publications

(288 citation statements)

References 35 publications

Supporting

Mentioning

278

Contrasting

Unclassified

Order By: Relevance

“…These results add a new perspective on boilerplate language by suggesting that such language reflects structural aspects of a bank that change slowly over time. It is also noteworthy that while the use of boilerplate language has increased significantly over time (Dyer et al, 2017), we find that boilerplate similarity across banks does not exhibit an increasing trend and the informative of such similarity for predicting future tail comovement has not deteriorate through time.…”

mentioning

confidence: 69%

“…We begin by separating our primary measure, AvgCos_BUSMDA, into boilerplate and non-boilerplate similarity following the methodology from Lang and Stice-Lawrence (2015) and Dyer et al, (2017). Specifically, a sentence is designated as boilerplate if it contains a 4-word phrase which appears in more than 60% of the BUS or MD&A disclosures of all banks in a given year.…”

Section: Relative Information Content Of Boilerplate and Non-boilerplmentioning

confidence: 99%

“…1 Further, our exploration the information properties of boilerplate language similarity across banks relative to non-boilerplate text similarity, contributes to the debate about the consequences of increasingly onerous accounting disclosures (Dyer et al, 2017;Li, 2008;SEC, 2013).…”

Section: Introductionmentioning

confidence: 96%

“…In this regard, we separate our primary measure (i.e., the combined business and MD&A text) into boilerplate language and non-boilerplate language following the methodology from Lang and Stice-Lawrence (2015) and Dyer et al, (2017). We then compute a separate boilerplate similarity measure and nonboilerplate similarity measure.…”

Section: Introductionmentioning

confidence: 99%

“…Significant increases in the length and complexity of 10-K verbal disclosures have prompted concerns about the usefulness and informativeness of these disclosures (KPMG, 2011;SEC, 2013;Lang and Stice-Lawrence (2015); Dyer et al (2017). Because the value of information depends on context, our extension to predicting tail comovement across banks expands the frontier of knowledge about the information content of 10-K disclosures.…”

mentioning

confidence: 99%

See 4 more Smart Citations

Informativeness and Timeliness of 10-K Text Similarity for Predicting Tail-Risk Comovement

2017

View full text Add to dashboard Cite

We measure a bank's connectedness by constructing a measure of its text similarity with other banks based on 10-K business description and MD&A discussions. We find that tail-risk comovement between a given bank and the banking system is increasing in the bank's average similarity. We also construct groups of connected peer banks, finding that banks co-move significantly more in the tails with their highest similarity peers. Finally, we separate 10-K text into boilerplate and non-boilerplate components. We find that both boilerplate and nonboilerplate similarity have incremental information about future tail comovement. However, nonboilerplate similarity is significantly timelier than boilerplate, consistent with non-boilerplate similarity capturing commonalities across banks in currently evolving fundamentals and boilerplate similarity capturing commonalities in structural features that evolve slowly over time.

show abstract

mentioning

confidence: 69%

Section: Relative Information Content Of Boilerplate and Non-boilerplmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 96%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

See 3 more Smart Citations

Informativeness and Timeliness of 10-K Text Similarity for Predicting Tail-Risk Comovement

2017

View full text Add to dashboard Cite

show abstract

Do Vice Chancellors' Career Horizon Matter for University Sustainability Performance? The Moderating Role of Soft Information

Roberts,

Wang,

Elamer

2024

Int. J Fin Econ

View full text Add to dashboard Cite

In the evolving landscape of higher education, leadership plays a pivotal role in directing institutional strategies towards sustainability. This study examines how the career horizons of Vice Chancellors (VCs)—often akin to CEOs in the corporate sector—influences the sustainability performance of UK universities. Using a unique hand‐collected dataset covering the years 2018–2022, our results show that shorter VC career horizons negatively impact universities' sustainability performance, indicating that VCs closer to retirement are more ethically and sustainability‐focused. Moreover, we explore how the disclosure of soft information—characterised as boilerplate and forward‐looking language in sustainability reports—affects this relationship. Our analysis indicates that this soft information significantly moderates the effects of VCs' career horizons on sustainability outcomes. Specifically, we discover that extensive use of forward‐looking and boilerplate language tends to exacerbate the negative impacts of shorter VC tenures on sustainability performance. This research contributes to the academic discourse by documenting how leadership tenure and the strategic use of narrative in public disclosures interact to shape institutional sustainability. The findings advocate for a strategic approach in leadership appointments and reporting practices, enhancing the alignment between leadership characteristics and the long‐term sustainability goals of higher education institutions.

show abstract

Costs associated with exit or disposal activities: A topic modeling investigation of disclosure and market reaction

Cullinan,

Holowczak,

Louton

et al. 2023

Intell Sys Acc Fin Mgmt

View full text Add to dashboard Cite

SummaryThe Securities and Exchange Commission (SEC) mandates disclosure of exit or disposal activity events in 8‐K filings. We use Latent Dirichlet Allocation (LDA), a topic modeling method from computational linguistics, to investigate the possibility that substantively different event types may be subsumed under Item 2.05, the SEC category for costs associated with exit or disposal activities. Our analysis reveals that four distinct topics are reported under the Item 2.05 umbrella category: (1) restructuring, (2) disposal of a line of business, (3) plant closings, and (4) layoffs/workforce reductions. We then investigate various aspects of these 8‐K filings. We find that the market reacts most negatively to workforce reductions that are reported in the absence of a broader strategic initiative. Subsequent amendments to the Item 2.05 8‐K filings are significantly more likely for restructuring initiatives, and significantly less likely for layoffs. Asset impairment charges most frequently accompany line‐of‐business disposals and plant closings. Our results demonstrate that there are meaningful differences between the event types reported within Item 2.05 filings and that LDA provides a useful means of differentiating among these event types.

show abstract

The evolution of 10-K textual disclosure: Evidence from Latent Dirichlet Allocation

Cited by 609 publications

References 35 publications

Informativeness and Timeliness of 10-K Text Similarity for Predicting Tail-Risk Comovement

Informativeness and Timeliness of 10-K Text Similarity for Predicting Tail-Risk Comovement

Do Vice Chancellors' Career Horizon Matter for University Sustainability Performance? The Moderating Role of Soft Information

Costs associated with exit or disposal activities: A topic modeling investigation of disclosure and market reaction

Contact Info

Product

Resources

About