publication . Article . 2017

Comprehensive assessment of firm financial performance using financial ratios and linguistic analysis of annual reports

Renáta Myšková; Petr Hájek;
Open Access English
  • Published: 01 Dec 2017 Journal: Journal of International Studies, volume 10, issue 4 (issn: 2071-8330, eissn: 2306-3483, Copyright policy)
  • Publisher: Centre of Sociological Research, Szczecin, Poland
Abstract
Indicators of financial performance, especially financial ratio analysis, have become important financial decision-support information used by firm management and other stakeholders to assess financial stability and growth potential. However, additional information may be hidden in management communication. The article deals with the analysis of the annual reports of U.S. firms from both points of view, a financial one based on a set of financial ratios, and a linguistic one based on the analysis of other information presented by firms in their annual reports. Spearman correlation coefficient is used to compare the values of financial and linguistic indicators. ...
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Subjects
free text keywords: financial ratio, financial analysis, topic analysis, dictionary, word list, lcsh:International relations, lcsh:JZ2-6530, Spearman's rank correlation coefficient, Business, Econometrics, Financial performance, Linguistic analysis
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