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Textual Analysis in Accounting and Finance: A Survey

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  • TIM LOUGHRAN
  • BILL MCDONALD

Abstract

Relative to quantitative methods traditionally used in accounting and finance, textual analysis is substantially less precise. Thus, understanding the art is of equal importance to understanding the science. In this survey, we describe the nuances of the method and, as users of textual analysis, some of the tripwires in implementation. We also review the contemporary textual analysis literature and highlight areas of future research.

Suggested Citation

  • Tim Loughran & Bill Mcdonald, 2016. "Textual Analysis in Accounting and Finance: A Survey," Journal of Accounting Research, Wiley Blackwell, vol. 54(4), pages 1187-1230, September.
  • Handle: RePEc:bla:joares:v:54:y:2016:i:4:p:1187-1230
    DOI: 10.1111/1475-679X.12123
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