About this document
Risk Sentiment in Annual Reports and Stocks by nathalia.acosta is a document available to read on EtoBox.
This paper investigates the relationship between the risk sentiment expressed in corporate annual reports and future earnings and stock returns. It finds that an increase in risk sentiment correlates with lower future earnings and negative stock returns, suggesting that investors may not fully understand the implications of risk disclosures. A hedge portfolio strategy based on risk sentiment can generate significant positive returns, indicating potential market inefficiencies related to textual information
- Author
- nathalia.acosta
- Language
- EN