Abstract/Description
Purpose:
The research explores sector-specific themes in Management Discussion and Analysis (MD&A) sections of 10-K reports to study their duration-related changes and their effects on financial market participants.
Study design/methodology/approach:
The study analyzes extensive MD&A disclosure data from U.S. publicly listed organizations which spanned between 2004 and 2022 through Latent Dirichlet Allocation (LDA) topic modeling. The research tracks industry-specific heterogeneity levels then provides insights into how corporate statements evolved throughout the examined period.
Findings:
The analysis indicates that different business sectors use distinct topics within MD&A reports to respond to specific challenges and risks along with industry strategies. The analysis displays substantial changes in these subjects which match the transformations in macroeconomic aspects and technological innovation and regulatory environments.
Originality/value:
The literature benefits from this research because it examines the combined effect of industry groups and time frames on corporate disclosure topics which remains understudied in existing studies. The paper builds on current research by revealing detailed changes in sector-based topics that drive market sentiment modifications.
Research limitations/implications:
The research examines disclosure practices through U.S.-based firms only which might not encompass worldwide business practices. New investigations should study global businesses alongside developing financial data analytics to include in their research inquiries.
Practical implications:
Market participants can improve their predictive models and investment decisions through the utilization of sector-specific information. Corporate managers should use disclosure measures that match stakeholder expectations as well as sector industry standards.
Social implications:
The study promotes open and individualized corporate communications that benefits both financial market trust and helps investors make better investment choices.
Keywords
Corporate Disclosures, Topic Modeling, Sectoral Analysis, Financial Text Mining
Track
Finance
Session Number/Theme
Finance - Session III
Session Chair
Dr. Javed Iqbal
Start Date/Time
14-6-2025 10:55 AM
End Date/Time
14-6-2025 12:35 PM
Location
MCC 10 Ground Floor, AMAN CED Building
Recommended Citation
Bajaj, N. K., Shaikh, R. S., & Shaique, M. (2025). Contextual Discussion and Stock Returns: A Cross-Sectional Analysis. IBA SBS 4th International Conference 2025. Retrieved from https://ir.iba.edu.pk/sbsic/2025/program/80
Contextual Discussion and Stock Returns: A Cross-Sectional Analysis
MCC 10 Ground Floor, AMAN CED Building
Purpose:
The research explores sector-specific themes in Management Discussion and Analysis (MD&A) sections of 10-K reports to study their duration-related changes and their effects on financial market participants.
Study design/methodology/approach:
The study analyzes extensive MD&A disclosure data from U.S. publicly listed organizations which spanned between 2004 and 2022 through Latent Dirichlet Allocation (LDA) topic modeling. The research tracks industry-specific heterogeneity levels then provides insights into how corporate statements evolved throughout the examined period.
Findings:
The analysis indicates that different business sectors use distinct topics within MD&A reports to respond to specific challenges and risks along with industry strategies. The analysis displays substantial changes in these subjects which match the transformations in macroeconomic aspects and technological innovation and regulatory environments.
Originality/value:
The literature benefits from this research because it examines the combined effect of industry groups and time frames on corporate disclosure topics which remains understudied in existing studies. The paper builds on current research by revealing detailed changes in sector-based topics that drive market sentiment modifications.
Research limitations/implications:
The research examines disclosure practices through U.S.-based firms only which might not encompass worldwide business practices. New investigations should study global businesses alongside developing financial data analytics to include in their research inquiries.
Practical implications:
Market participants can improve their predictive models and investment decisions through the utilization of sector-specific information. Corporate managers should use disclosure measures that match stakeholder expectations as well as sector industry standards.
Social implications:
The study promotes open and individualized corporate communications that benefits both financial market trust and helps investors make better investment choices.
