Beyond the world of financial data, both accounting research and investor practice increasingly discover the field of non-financial information. Greater-than-ever data availability paired with the continuous rise in computing capabilities allow for enhanced qualitative analyses. In a recent study, we use sentiment analysis and dedicate ourselves to the strategic management of the tone of different disclosure media. We find that top managers systematically hype their firms prior to M&A-rich periods.

Felix Hermes, Christopher Neumann, Thomas Berndt

May 2019