Automatic summarization of earnings releases: attributes and effects on investors’ judgments

• Published in: Review of accounting studies Vol. 24; no. 3; pp. 860 - 890
• Main Authors: Cardinaels, Eddy, Hollander, Stephan, White, Brian J.
• Format: Journal Article
• Language: English
• Published: New York Springer US 01.09.2019; Springer Nature B.V
• Subjects: Accounting/Auditing; Business and Management; Corporate Finance; Disclosure; Earnings announcements; Public Finance; Investor judgment; Earnings release; Individual investors; G12; G14; M41; Management summary; Automatic summary

Firms often include summaries with earnings releases. However, manager-generated summaries may be prone to strategic tone and content management, compared to the underlying disclosures they summarize. In contrast, computer algorithms can summarize text without human intervention and may provide usef...