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Articles 91 - 120 of 402
Full-Text Articles in Accounting
Social Media Analysts And Sell‑Side Analyst Research, Michael S. Drake, James R. Moon Jr., Brady J. Twedt, James D. Warren
Social Media Analysts And Sell‑Side Analyst Research, Michael S. Drake, James R. Moon Jr., Brady J. Twedt, James D. Warren
Faculty Publications
We examine how research posted by “social media analysts” (SMAs)—individuals posting equity research online via social media investment platforms—is related to research subsequently produced by professional sell-side equity analysts. Using data from Seeking Alpha, we find that the market reaction to sell-side analyst research is substantially reduced when the analyst research is preceded by the report of an SMA, and that this is particularly true of sell-side analysts’ earnings forecasts. We further find that this effect is more pronounced when SMA reports contain more decision-useful language, are produced by SMAs with greater expertise, and relate to firms with greater retail …
A Simple Approach To Better Distinguish Real Earnings Manipulation From Strategy Changes, Theodore E. Christensen, Adrienna Huffman, Melissa F. Lewis-Western, Kristen Valentine
A Simple Approach To Better Distinguish Real Earnings Manipulation From Strategy Changes, Theodore E. Christensen, Adrienna Huffman, Melissa F. Lewis-Western, Kristen Valentine
Faculty Publications
Researchers typically infer real earnings management when a firm’s operating and investing activities differ from industry norms. A significant problem with classifying deviations from industry averages as myopic earnings management is that companies can change their operating and investing decisions for strategic business reasons rather than to mislead stakeholders. Using principal components analysis, we systematically evaluate existing measures and develop a comprehensive real activities measure to better capture earnings manipulation. Our measure reflects (i) deviations from industry averages across multiple activities and (ii) other signals of manipulation. This approach is promising because, although there are many sources of abnormal activities, …
Students Coming Prepared To Class? A Review Of The Literature With A Call To Research, Melissa P. Larson, Jace Linnell
Students Coming Prepared To Class? A Review Of The Literature With A Call To Research, Melissa P. Larson, Jace Linnell
Faculty Publications
In this literature review, we show that little attention has been given to pre-class learning in a flipped classroom setting. To support learning, a flipped classroom shifts the learning of basic content from a classroom setting to a pre-class setting, thereby freeing up time within class for more active learning activities. Active learning activities support student-centered learning as peers collaborate with deep application of pre-class learning concepts. Thus, higher-order skills of critical thinking and lifelong learning, which are valued in the accounting education curriculum and profession, can be developed through a flipped classroom pedagogy. However, if pre-class learning is not …
Fool Me Once, Shame On You; Fool Me Twice, Shame On Me: The Long-Term Impact Of Arthur Andersen’S Demise On Partners’ Audit Quality*, Feng Guo, Ling Lei Lisic, Jeffrey Pittman, Timothy Seidel, Mi Zhou, Ying Zhou
Fool Me Once, Shame On You; Fool Me Twice, Shame On Me: The Long-Term Impact Of Arthur Andersen’S Demise On Partners’ Audit Quality*, Feng Guo, Ling Lei Lisic, Jeffrey Pittman, Timothy Seidel, Mi Zhou, Ying Zhou
Faculty Publications
Although recent evidence suggests that individual audit partners explain a substantial portion of the variation in audit quality proxies, much less is known about what determines an audit partner’s quality. Psychology and behavioral economics theories hold that an individual’s experiences can have enduring impacts on subsequent behavior. We examine whether auditors’ direct exposure to Arthur Andersen’s collapse has a long-term impact on the quality of their audits. Our evidence implies that audit partners who directly experienced Andersen’s demise impose stricter monitoring evident in their clients exhibiting a lower propensity for misstatements and small profits, and paying higher audit fees. Importantly, …
The Impact Of Managerial Discretion In Revenue Recognition: A Reexamination*, Linda A. Myers, Roy Schmardebeck, Timothy Seidel, Michael D. Stuart
The Impact Of Managerial Discretion In Revenue Recognition: A Reexamination*, Linda A. Myers, Roy Schmardebeck, Timothy Seidel, Michael D. Stuart
Faculty Publications
Although the FASB and IASB conceptual frameworks identify relevance and faithful representation as the fundamental qualitative characteristics of useful information, prior research suggests that revenue recognition accounting standards that restrict managerial discretion resulted in improved faithful representation but reduced relevance. We use the adoption of Accounting Standards Update (ASU) 2009-13 and ASU 2009-14 to examine the effects of increased managerial discretion to accelerate revenue recognition in multiple-deliverable arrangements; that is, transactions where vendors sell multiple products or services that are delivered at different points in time. We find that increased discretion results in an increase in the relevance of reported …
Discussion Of ‘The Effect Of Changes In Income Shifting On Affiliate Managers’ Internal Reporting Decisions, Zackery D. Fox, Ryan J. Wilson
Discussion Of ‘The Effect Of Changes In Income Shifting On Affiliate Managers’ Internal Reporting Decisions, Zackery D. Fox, Ryan J. Wilson
Faculty Publications
Klassen and Valle Ruiz (hereafter KVR) investigate an interesting question that has not been explored in existing research. Specifically, they look at the effect of a change in income shifting strategy on affiliate managers’ internal reporting choices. The paper adds to a growing category of the tax accounting literature examining the consequences of multinational enterprises (MNEs) tax-motivated income shifting for various stakeholders. KVR turn their focus within the firm by testing whether distortions caused by tax-motivated income shifting alter affiliate managers’ internal reporting behavior.
You Can't Get There From Here: The Influence Of An Audit Partner's Prior Non-Public Accounting Experience On Audit Outcomes*, Ling Lei Lisic, Jeffrey Pittman, Timothy Seidel, Aleksandra "Ally" B. Zimmerman
You Can't Get There From Here: The Influence Of An Audit Partner's Prior Non-Public Accounting Experience On Audit Outcomes*, Ling Lei Lisic, Jeffrey Pittman, Timothy Seidel, Aleksandra "Ally" B. Zimmerman
Faculty Publications
We examine the importance of audit partners' prior non-public accounting experience (hereafter, “industry experience”) to audit outcomes. We conducted 20 (nine) semi-structured interviews of audit partners with (without) industry experience. These interviews shed light on industry-experienced partners’ career path choices, perceptions of the challenges and benefits stemming from industry experience, and perceptions of how this experience influences their current audit work. Grounded in theory and the results of these interviews, we empirically examine using a unique hand-collected dataset whether audit partners with industry experience conduct higher quality and more efficient audits. Our evidence implies that industry experience is associated with …
The Effects Of A Second-Chance Exam Policy In A Large-Enrollment Introductory Accounting Course, Melissa Larson, William B. Tayler, Jared R. Stark
The Effects Of A Second-Chance Exam Policy In A Large-Enrollment Introductory Accounting Course, Melissa Larson, William B. Tayler, Jared R. Stark
Faculty Publications
Using a quasi-experimental design, we compare two semesters of an introductory accounting course to evaluate the impact of a second-chance exam policy (SCEP) on student performance and anxiety, analyzing data from 1,986 students. The SCEP, allowing two additional attempts at exams capped at 80 percent credit, significantly improved academic outcomes and decreased perceived test anxiety. Specifically, students during the SCEP semester experienced an average increase of 4.46 percent in exam scores (p < 0.01), a 3.37 percent increase in course percentage points (p < 0.01), and a GPA increase of 0.21 (p < 0.01). Notably, women experienced greater improvements than men in measured academic outcomes. Our findings suggest that SCEPs can be an effective intervention to increase academic performance and reduce anxiety. We also examine an SCEP’s effect on preparation for exam first attempts and find that students perform better on a first attempt with an SCEP.
Updated Perceptions Of Accounting Academics On The Review And Publication Process, F. Greg Burton, William G. Heninger, Scott L. Summers, David A. Wood
Updated Perceptions Of Accounting Academics On The Review And Publication Process, F. Greg Burton, William G. Heninger, Scott L. Summers, David A. Wood
Faculty Publications
We update the Wood (2016) survey that gathered perceptions of academics regarding the review and publication process at the top academic journals to measure changes in perceptions over the last five years. We find that accounting academics generally perceive the overall process has not improved at top journals or has become worse since 2015. More specifically, we find that respondents think acceptance rates in top journals should nearly double. Respondents believe that reviewers and editors underweight practice relevance. They also believe reviewers overweight the criteria of incremental contribution, method, and rigor. Respondents believe that their institutions focus too much on …
The Influence Of Management’S Internal Audit Experience On Earnings Management, Matthew Ege, Timothy Seidel, Mikhail Sterin, David A. Wood
The Influence Of Management’S Internal Audit Experience On Earnings Management, Matthew Ege, Timothy Seidel, Mikhail Sterin, David A. Wood
Faculty Publications
We examine whether firms with managers that have prior internal audit experience are less likely to manage earnings. This examination is important because the internal audit function is uniquely positioned to provide experiences that could influence future managerial behavior, including limiting the potential negative repercussions of earnings management. We find that firms with managers that have internal audit experience are associated with lower real earnings management but not accruals-based earnings management. Effects are strongest when managers with internal audit experience have greater power or currently hold financial roles, or when there are a greater number of managers with internal audit …
Evidence On Internal Audit Quality From Transitioning To Remote Audits Because Of Covid-19, Marc Eulerich, Martin Wagener, David A. Wood
Evidence On Internal Audit Quality From Transitioning To Remote Audits Because Of Covid-19, Marc Eulerich, Martin Wagener, David A. Wood
Faculty Publications
As in-person audits were banned by governments and by company policies due to the COVID-19 pandemic, internal auditors had to transition to remote audits to perform their work. Based on survey responses of internal auditors who have conducted both remote and in-person audits, we find that internal auditors perceive no difference in the efficiency and effectiveness of and stakeholders’ reliance on results from remote and in-person audits when considering all responses. However, we also find that perceived efficiency and effectiveness increase the more experience internal auditors have with remote audits. Supplemental analyses show that support from the auditee, but not …
Brokerage Relationships And Analyst Forecasts: Evidence From The Protocol For Broker Recruiting, Braiden Coleman, Michael S. Drake, Joseph Pacelli, Brady Twedt
Brokerage Relationships And Analyst Forecasts: Evidence From The Protocol For Broker Recruiting, Braiden Coleman, Michael S. Drake, Joseph Pacelli, Brady Twedt
Faculty Publications
We offer novel evidence on how the nature of brokerage-client relationships can influence the quality of equity research. We exploit a unique setting provided by the Protocol for Broker Recruiting to examine whether relaxed broker noncompete agreement enforcement generates spillover effects on sell-side analysts. Entry into this agreement reassigns ownership of the client relationship from the brokerage to individual brokers, potentially generating a greater standard of care. Using a generalized difference-in-differences research design, we provide evidence consistent with brokers reducing pressure on analysts to produce optimistic research following protocol entry. This effect is concentrated among less experienced and non-All Star …
The Relevance Of Non-Income Tax Relief*, Michael S. Drake, Ryan V. Hess, Jaron H. Wilde, Braden M. Williams
The Relevance Of Non-Income Tax Relief*, Michael S. Drake, Ryan V. Hess, Jaron H. Wilde, Braden M. Williams
Faculty Publications
Governments regularly offer non-income tax relief to attract business investment. However, it is unclear whether or how markets impound information about the relief into security prices. We use novel data from retrospective public records to examine the information content of non-income tax relief. We predict and find that the receipt and magnitude of this relief are both strongly associated with recipients’ future accounting performance and future abnormal returns. We further find that abnormal returns associated with the relief cluster around future earnings information events. In combination, this evidence suggests that non-income tax relief is value-relevant but is incorporated into prices …
A Tale Of Two Index Funds: Full Replication Vs. Representative Sampling*, Travis Dyer, Nicholas Guest
A Tale Of Two Index Funds: Full Replication Vs. Representative Sampling*, Travis Dyer, Nicholas Guest
Faculty Publications
We examine the two approaches used by equity index funds to track their benchmark index. The first, full replication, mimics the index with exactness. The second, representative sampling, holds a subset of the index. We find that samplers trade 3-4 times more, have 30-50% higher expenses and fees, and earn 50-70 basis points lower annual returns, which is substantial given index funds’ mandate to limit tracking error to a few basis points. Besides higher expenses and transaction costs, poor stock picking also seems to contribute to samplers’ return underperformance. Overall, our analyses suggest representative sampling is associated with underperformance.
Tax Boycotts, H. Scott Asay, Jacob Thornock, Jeffrey L. Hoopes, Jaron H. Wilde
Tax Boycotts, H. Scott Asay, Jacob Thornock, Jeffrey L. Hoopes, Jaron H. Wilde
Faculty Publications
To what extent do consumers boycott in response to corporate tax activities? Anecdotes suggest potential consumer backlash is a meaningful deterrent to corporate tax planning, and the tax literature has developed expectations that these boycotts happen. But empirical evidence on their existence and impact is limited. We undertake a comprehensive study to examine how consumers’ purchase behavior relates to corporate tax activities, triangulating across several designs, samples, and measures. First, we survey a representative sample of U.S. consumers to examine the reported relationship between corporate tax planning and consumer behavior; we find that consumers report that precisely zero have ever …
Cheating For The Cause: The Effects Of Performance-Based Pay On Socially Oriented Misreporting, Jessen L. Hobson, Ryan D. Sommerfeldt, Laura W. Wang
Cheating For The Cause: The Effects Of Performance-Based Pay On Socially Oriented Misreporting, Jessen L. Hobson, Ryan D. Sommerfeldt, Laura W. Wang
Faculty Publications
We examine the effect of performance-based pay on misreporting intended to benefit a social mission. We show that performance-based pay decreases people’s propensity to misreport for a social mission in a not-for-profit setting (Experiment 1). We similarly show that in a for-profit setting, performance-based pay also decreases misreporting propensity for a social mission, although not for a non-social mission (Experiment 2). Finally, using a framed field experiment with participants attending a conference hosted by a real charity, we show that performance-based pay reduces actual misreporting when misreporting leads to more donations for the charity (Experiment 3). These results are consistent …
Auditing Non-Gaap Measures: Signaling More Than Intended, Spencer B. Anderson, Jessen L. Hobson, Ryan D. Sommerfeldt
Auditing Non-Gaap Measures: Signaling More Than Intended, Spencer B. Anderson, Jessen L. Hobson, Ryan D. Sommerfeldt
Faculty Publications
Many companies regularly disclose non-GAAP performance measures to communicate firm-specific information that does not fit within the mold of GAAP reporting. However, these non- GAAP measures may have low information content or even be misleading to investors. Thus, the question arises of whether auditors should play a larger role in the reporting of non-GAAP measures, which currently are not audited. We run an experiment to provide ex ante evidence on the effect of auditing non-GAAP measures. Specifically, we present investor-participants with a non- GAAP measure that should be used when making investment judgments (more informative) or should not be used …
Mining Open Government Data For Business Intelligence Using Data Visualization: A Two-Industry Case Study, Anne Gottfried, Caroline Hartmann, Donald Yates
Mining Open Government Data For Business Intelligence Using Data Visualization: A Two-Industry Case Study, Anne Gottfried, Caroline Hartmann, Donald Yates
Faculty Publications
The business intelligence (BI) market has grown at a tremendous rate in the past decade due to technological advancements, big data and the availability of open source content. Despite this growth, the use of open government data (OGD) as a source of information is very limited among the private sector due to a lack of knowledge as to its benefits. Scant evidence on the use of OGD by private organizations suggests that it can lead to the creation of innovative ideas as well as assist in making better informed decisions. Given the benefits but lack of use of OGD to …
How Do Team Workloads And Team Staffing Affect The Audit? Archival Evidence From U.S. Audits, Brant E. Christensen, Nathan J. Newton, Michael S. Wilkins
How Do Team Workloads And Team Staffing Affect The Audit? Archival Evidence From U.S. Audits, Brant E. Christensen, Nathan J. Newton, Michael S. Wilkins
Faculty Publications
We use U.S. data from a global accounting firm to investigate how two key elements of audit teams eworkloads and staffing continuity e affect the audit. We find that heavier team workloads are associated with lower audit quality, particularly when team members have lower performance ratings or have total workloads that exceed 60 h per week. In addition to finding evidence of employee burnout, we also document an incremental distraction effect. Specifically, we find that audit quality on the primary client suffers when team members spend more time during busy season on other concurrent clients. Regarding continuity, we find that …
Internal Audit Stigma Impairs Internal Audit Outcomes, Marc Eulerich, Joleen Kremin, K. Kelli Saunders, David A. Wood
Internal Audit Stigma Impairs Internal Audit Outcomes, Marc Eulerich, Joleen Kremin, K. Kelli Saunders, David A. Wood
Faculty Publications
Prior research finds that the internal audit function (IAF) plays a critical role in organizations, yet there is still a stigma toward the profession. We examine how this stigma affects internal audit outcomes, using three different data sources: survey results from parts of Europe and the United States and an experiment. We find that when practicing internal auditors in parts of Europe and the U.S. believe there is a negative stigma about internal auditing, they report negative work outcomes, including less ability to add value, less influence in the organization, more resistance to implementing their recommendations, and more pressure to …
Implicit Attitudes And U.S. Tax Professionals’ Reliance On Offshore Tax Professionals’ Recommendations, Brian C. Spilker, Bryan W. Stewart, David A. Wood
Implicit Attitudes And U.S. Tax Professionals’ Reliance On Offshore Tax Professionals’ Recommendations, Brian C. Spilker, Bryan W. Stewart, David A. Wood
Faculty Publications
Large accounting firms offshore a significant amount of tax work to professionals in India. Prior research suggests that individuals can have negative implicit attitudes toward people from different nationalities and that negative implicit attitudes can have undesired consequences. In this study, we measure a sample of U.S. tax professionals’ implicit attitudes toward Indian persons using an implicit association test (IAT) and assess whether the U.S. tax professionals respond differently to work produced by Indian versus U.S. tax professionals and whether implicit attitudes affect the U.S. professionals’ assessments of Indian tax professionals’ work product. We document that participants in our study …
Are Internal Audits Associated With Reductions In Perceived Risk?, Joseph V. Carcello, Marc Eulerich, Adi Masli, David A. Wood
Are Internal Audits Associated With Reductions In Perceived Risk?, Joseph V. Carcello, Marc Eulerich, Adi Masli, David A. Wood
Faculty Publications
We examine whether internal auditing provides value to organizations by reducing risk. We compare the changes in risks between audited business units and matched non-audited units within the same company. This design allows us to isolate the importance of an internal audit while holding constant changes in risk due to the organization and time period. Based on ratings from the heads of audited and non-audited units, we find that managers of audited units perceive a greater decline in risk as well as a greater increase in performance compared to managers of non-audited units. We also find that companies that have …
Earnings Announcement Delays And Implications For The Auditor-Client Relationship, Kimball Chapman, Michael S. Drake, Joseph Schroeder, Timothy Seidel
Earnings Announcement Delays And Implications For The Auditor-Client Relationship, Kimball Chapman, Michael S. Drake, Joseph Schroeder, Timothy Seidel
Faculty Publications
We examine whether delays in the expected release of annual earnings have implications for the future auditor-client relationship. Managers have strong incentives to release earnings on schedule and auditors play an important role in helping their clients avoid costly earnings announcement delays. We find an increased likelihood of subsequent auditor-client realignments after earnings announcement delays. We further find that clients changing auditors realign with audit firms that better meet their earnings announcement timing demands without any evidence of a significant compromise to the reliability of the financial statement numbers in the earnings announcement. Our results help inform regulatory concerns about …
The Demand For Public Information By Local And Nonlocal Investors: Evidence From Investor-Level Data*, Travis Dyer
The Demand For Public Information By Local And Nonlocal Investors: Evidence From Investor-Level Data*, Travis Dyer
Faculty Publications
I examine the demand for public information by local and nonlocal investors. Using novel data on institutional investors' requests for financial information from the SEC, I document that investors acquire approximately 20% more financial information for their local investments. This pattern holds after controlling for investors’ 13(f) portfolio holdings. I further demonstrate that this pattern is concentrated in stocks eliciting behavioral biases as well as among investors with strong company relationships. Consistent with public information acquisition being more beneficial to local investors, I find that local investors exhibit both enhanced timeliness in acquiring public information and superior portfolio trading decisions …
The Effect Of New Accounting Standards On The Performance Of Quantitative Investors*, Travis Dyer, Nicholas Guest, Jia Yin (Elisha) Yu
The Effect Of New Accounting Standards On The Performance Of Quantitative Investors*, Travis Dyer, Nicholas Guest, Jia Yin (Elisha) Yu
Faculty Publications
Quantitative investing relies on stable data generating processes and limited human involvement, which could create lower flexibility in the face of changing economic conditions. In this study, we examine quantitative investors’ ability to navigate a common and material change to the financial data generating process: new accounting standards. We find that returns of quantitative mutual funds temporarily decrease following the implementation of standards that change the definition of key accounting variables. The lower performance we document is relative to more traditional “discretionary” funds that rely heavily on human skill and judgment to make day-to-day investment decisions. Our result is predictably …
Blockchain Technology: A Survey Of Croatian Business Leaders, Dražen Zec, William G. Heninger
Blockchain Technology: A Survey Of Croatian Business Leaders, Dražen Zec, William G. Heninger
Faculty Publications
Blockchain or distributed ledger technology emerged over ten years ago as the underlying technology of bitcoin. Blockchain is a special kind of database with individual records or blocks linked together in a sequential list called chain of blocks. These records are validated by multiple nodes in peer-to-peer networks and they are immutable. It is a decentralized system, with no need for intermediaries where all decisions are made using different consensus mechanisms. High expectations from blockchain technology, combined with a lack of deeper knowledge about the technology are expressed in the results from the survey conducted on a sample of Croatian …
Factors Affecting The Outcomes Of Legal Claims Against Auditors, Karen D. De Meyst, D. Jordan Lowe, Mark E. Peecher, Jeffrey Pickerd, Andrew Reffett
Factors Affecting The Outcomes Of Legal Claims Against Auditors, Karen D. De Meyst, D. Jordan Lowe, Mark E. Peecher, Jeffrey Pickerd, Andrew Reffett
Faculty Publications
Maksymov, Pickerd, Lowe, Peecher, and Reffett (2020b) draw insights based on interviews with 27 prominent audit litigation attorneys about the factors affecting the initiation of legal claims against auditors and how such factors affect settlement outcomes. We summarize their key findings and discuss important implications for audit practitioners. Specifically, we focus on the key factors that affect plaintiff attorneys’ willingness to pursue legal claims against auditors, including the merits of the claim, size of alleged economic damages, auditors’ ability to pay, and the expected cost to pursue the claim. We also discuss the reasons why most audit disputes settle (as …
The Effects Of High Estimate Uncertainty In Auditor Negligence Litigation*, Jeffrey Pickerd, M. David Piercey
The Effects Of High Estimate Uncertainty In Auditor Negligence Litigation*, Jeffrey Pickerd, M. David Piercey
Faculty Publications
We examine how jurors’ negligence judgments and attorneys’ out-of-court settlements are differently impacted by two features of a materially misstated accounting estimate—the amount of estimate uncertainty and whether the misstated account is disaggregated into its own line-item or aggregated with other accounts into a single financial statement line-item. We predict and find that jurors and attorneys react to estimate uncertainty in opposite directions under common conditions. This finding is important because when jurors’ judgments and attorneys’ settlements differ, research into juror judgments alone may not capture a complete picture of auditor liability because the vast majority of audit litigation is …
Corporate Governance And Tax Avoidance: Evidence From Governance Reform, Jon Kerr, Richard Price, Francisco J. Román, Miles A. Romney
Corporate Governance And Tax Avoidance: Evidence From Governance Reform, Jon Kerr, Richard Price, Francisco J. Román, Miles A. Romney
Faculty Publications
Prior literature struggles to find evidence in U.S. settings to support the Desai and Dharmapala (2006) theory on how corporate governance affects tax avoidance. Most studies rely on equity incentive compensation as their governance proxy. We use a Mexican setting to examine this association and find firms with stronger governance engage in less tax avoidance. We rely on both a hand-collected governance index and governance reform to show improved corporate governance pushes tax avoidance toward a new equilibrium. Supplementary analyses show associations between governance and tax avoidance are greatest for tax-cost-sensitive familyowned firms and non-cross-listed firms with naturally weaker governance. …
Disclosure Sentiment: Machine Learning Vs Dictionary Methods, Richard Frankel, Jared Jennings, Joshua A. Lee
Disclosure Sentiment: Machine Learning Vs Dictionary Methods, Richard Frankel, Jared Jennings, Joshua A. Lee
Faculty Publications
We compare the ability of dictionary-based and machine-learning methods to capture disclosure sentiment at 10-K filing and conference call dates. Like Loughran and McDonald (2011), we use returns to assess sentiment. We find that measures based on machine learning offer a significant improvement in explanatory power over dictionary-based measures. Specifically, machine-learning measures explain returns at 10-K filing dates, while measures based on the Loughran and McDonald dictionary only explain returns at 10-K filing dates during the time period of their study. Moreover, at conference-call dates, machine-learning methods offer an improvement over the Loughran and McDonald dictionary method of a greater …