Dictionary of Extreme Language in Voluntary Disclosures
This dictionary consists of 23,355 words and phrases that are ranked on a scale ranging from “-5” for extremely negative to “+5” for extremely positive, where “0” indicates a neutral word or phrase. We briefly summarize the dictionary creation procedure below and provide more details in our published paper.
- We extracted all adjectives, nouns, and verbs that occurred in more than 1% of 60,940 earnings conference call transcripts.
- We then deleted finance and accounting terms as well as stop words, names, and generic terms.
- We then added more words from Loughran and McDonald (2011)’s positive and negative word lists (see http://ssrn.com/abstract=1331573), if those words were not already included in the dictionary.
- For each word in the merged dictionary, we also tried to find synonym words and phrases using the Microsoft Word’s thesaurus feature.
Steps 1) – 4) generated 23,355 words and phrases.
- We then employed individuals subscribed to Amazon’s Mechanical Turk service (MTurk) to rate all words/phrases in the dictionary.
Follow this LINK to download the rated dictionary. Please reference our paper when using the dictionary: Khrystyna Bochkay, Jeffrey Hales, and Sudheer Chava (2019) Hyperbole or Reality? Investor Response to Extreme Language in Earnings Conference Calls. The Accounting Review In-Press.