Textual Analysis in Accounting andFinance: A Survey

ArXiv ID: ssrn-2504147 “View on arXiv”

Authors: Unknown

Abstract

Relative to quantitative methods traditionally used in accounting and finance, textual analysis is substantially less precise. Thus, understanding the art is of

Keywords: Textual Analysis, Accounting Research, Finance Research, Natural Language Processing, General (Accounting & Finance)

Complexity vs Empirical Score

  • Math Complexity: 3.0/10
  • Empirical Rigor: 2.0/10
  • Quadrant: Philosophers
  • Why: The paper is a survey of textual analysis methods, focusing on conceptual frameworks and methodological ’tripwires’ rather than advanced mathematical derivations or empirical backtesting; it emphasizes understanding the art and science of text processing without presenting new quantitative models or implementation-heavy data.
  flowchart TD
    A["Research Goal: Quantify Text in Financial Contexts"] --> B["Data Sources<br>10-Ks, Earnings Calls, News"]
    B --> C["Methodology<br>Preprocessing &amp; Dictionaries"]
    C --> D["Computational Process<br>Sentiment/Readability Scoring"]
    D --> E{"Outcome"}
    E --> F["Findings: Sentiment predicts returns/volatility"]
    E --> G["Findings: Readability impacts cost of capital"]