Is Textual Information Contained in Financial Documents Informative? Assessing Transparency using Textual Analysis

References

• Allee, K. D., & DeAngelis, M. D. (2015). The structure of voluntary disclosure narratives: Evidence from tone dispersion. Journal of Accounting Research, 53(2), 241–274. https://doi.org/10.1111/1475-679X.12072
   Web of Science ®Google Scholar
• Alt, J. E., & Lassen, D. D. (2006). Fiscal transparency, political parties, and debt in OECD countries. European Economic Review, 50(6), 1403–1439. https://doi.org/10.1016/j.euroecorev.2005.04.001
   Web of Science ®Google Scholar
• Alt, J. E., Lassen, D. D., & Rose, S. (2006). The causes of fiscal transparency: Evidence from the U.S. states. IMF Staff papers. Special Issue), 53, 30–57.
   Google Scholar
• Antweiler, W., & Frank, M. Z. (2004). Is all that talk just noise? The information content of Internet stock message boards. The Journal of Finance, 59(3), 1259–1294. https://doi.org/10.1111/j.1540-6261.2004.00662.x
   Web of Science ®Google Scholar
• Bannister, F., & Connolly, R. (2011). The trouble with transparency: A critical review of openness in e‐government. Policy & Internet, 3(1), 158–187. https://doi.org/10.2202/1944-2866.1076
   Google Scholar
• Barabas, J., & Jerit, J. (2009). Estimating the causal effects of media coverage on policy‐specific knowledge. American Journal of Political Science, 53(1), 73–89. https://doi.org/10.1111/j.1540-5907.2008.00358.x
   Web of Science ®Google Scholar
• Bayou, M. E., Reinstein, A., & Williams, P. F. (2011). To tell the truth: A discussion of issues concerning truth and ethics in accounting. Accounting, Organizations and Society, 36(2), 109–124. https://doi.org/10.1016/j.aos.2011.02.001
   Web of Science ®Google Scholar
• Besley, T., & Prat, A. (2006). Handcuffs for the grabbing hand? Media capture and government accountability. American Economic Review, 96(3), 720–736. https://doi.org/10.1257/aer.96.3.720
   Web of Science ®Google Scholar
• Brunetti, A., & Weder, B. (2003). A free press is bad news for corruption. Journal of Public Economics, 87(7–8), 1801–1824. https://doi.org/10.1016/S0047-2727(01)00186-4
   Web of Science ®Google Scholar
• Caamaño-Alegre, J., Lago-Peñas, S., Reyes-Santias, F., & Santiago-Boubeta, A. (2013). Budget transparency in local governments: An empirical analysis. Local Government Studies, 39(2), 182–207. https://doi.org/10.1080/03003930.2012.693075
   Web of Science ®Google Scholar
• Chen, J., Demers, E., & Lev, B. (2018). Oh what a beautiful morning! diurnal influences on executives and analysts: Evidence from conference calls. Management Science, 64(12), 5899–5924. https://doi.org/10.1287/mnsc.2017.2888
   Web of Science ®Google Scholar
• Chen, G., Kang, H., & Luna-Reyes, L. F. (2019). Key determinants of online fiscal transparency: A technology-organization-environment framework. Public Performance & Management Review, 42(3), 606–631. https://doi.org/10.1080/15309576.2018.1486213
   Web of Science ®Google Scholar
• Chowdhury, S. K. (2004). The effect of democracy and press freedom on corruption: An empirical test. Economics Letters, 85(1), 93–101. https://doi.org/10.1016/j.econlet.2004.03.024
   Web of Science ®Google Scholar
• Craig, S. C., Kane, J. G., & Gainous, J. (2005). Issue-related learning in a Gubernatorial Campaign: A panel study. Political Communication, 22(4), 483–503. https://doi.org/10.1080/10584600500311501
   Web of Science ®Google Scholar
• Cucciniello, M., & Nasi, G. (2014). Transparency for trust in government: How effective is formal transparency? International Journal of Public Administration, 37(13), 911–921. https://doi.org/10.1080/01900692.2014.949754
   Google Scholar
• Cucciniello, M., Porumbescu, G. A., & Grimmelikhuijsen, S. (2017). 25 years of transparency research: Evidence and future directions. Public Administration Review, 77(1), 32–44.
   Web of Science ®Google Scholar
• da Cruz, N. F., Tavares, A. F., Marques, R. C., Jorge, S., & De Sousa, L. (2016). Measuring local government transparency. Public Management Review, 18(6), 866–893. https://doi.org/10.1080/14719037.2015.1051572
   Web of Science ®Google Scholar
• Esteller-Moré, A., & Polo Otero, J. (2012). Fiscal Transparency: (Why) does your local government respond? Public Management Review, 14(8), 1153–1173. https://doi.org/10.1080/14719037.2012.657839
   Web of Science ®Google Scholar
• Etzioni, A. (2010). Is transparency the best disinfectant. Journal of Political Philosophy, 18(4), 389–404. https://doi.org/10.1111/j.1467-9760.2010.00366.x
   Web of Science ®Google Scholar
• Evans, J. H. III, & Patton, J. M. (1983). An economic analysis of participation in the municipal finance officers association certificate of conformance program. Journal of Accounting and Economics, 5, 151–175. https://doi.org/10.1016/0165-4101(83)90009-5
   Web of Science ®Google Scholar
• Financial Accounting Standards Board. (1978). Statement of financial accounting concepts No. 1: Objectives of financial reporting by business enterprises. FASB.
   Google Scholar
• Finkler, S. A., Smith, D. L., Calabrese, T. D., & Purtell, R. M. (2016). Financial management for public, health, and not-for-profit organizations. CQ Press.
   Google Scholar
• Gilens, M. (2001). Political ignorance and collective policy preferences. American Political Science Review, 95(2), 379–396. https://doi.org/10.1017/S0003055401002222
   Web of Science ®Google Scholar
• Golder, S. A., & Macy, M. W. (2011). Diurnal and seasonal mood vary with work, sleep, and daylength across diverse cultures. Science, 333(6051), 1878–1881. https://doi.org/10.1126/science.1202775
   PubMed Web of Science ®Google Scholar
• Government Accounting Standard Board (GASB). (1999). Summary of Statement No. 34. Retrieved from https://www.gasb.org/st/summary/gstsm34.html.
   Google Scholar
• Grimmelikhuijsen, S. G., & Welch, E. W. (2012). Developing and testing a theoretical framework for computer‐mediated transparency of local governments. Public Administration Review, 72(4), 562–571. https://doi.org/10.1111/j.1540-6210.2011.02532.x
   Web of Science ®Google Scholar
• Grimmer, J., & Stewart, B. M. (2013). Text as data: The promise and pitfalls of automatic content analysis methods for political texts. Political Analysis, 21(3), 267–297. https://doi.org/10.1093/pan/mps028
   Web of Science ®Google Scholar
• Guo, H., Fink, D., & Frank, H. (2009). Disclosure quality of management discussion and analysis (MD&A): Evidence from large Florida cities. Municipal Finance Journal, 30(3), 53–72.
   Google Scholar
• Hendrick, R. (2004). Assessing and measuring the fiscal heath of local governments: Focus on Chicago suburban municipalities. Urban Affairs Review, 40(1), 78–114. https://doi.org/10.1177/1078087404268076
   Web of Science ®Google Scholar
• Heald, D. (2006a). Varieties of transparency. In C. Hood & D. Heald (Eds.), Transparency: The key to better governance? ( pp. 25–43). Oxford University Press for The British Academy.
   Google Scholar
• Heald, D. (2006b). Transparency as an instrumental value. In C. Hood & D. Heald (Eds.), Transparency: The key to better governance? (pp. 59–73). Oxford University Press for The British Academy.
   Google Scholar
• Heald, D. (2012). Why is transparency about public expenditure so elusive? International Review of Administrative Sciences, 78(1), 30–49. https://doi.org/10.1177/0020852311429931
   Web of Science ®Google Scholar
• Hirano, S., Lenz, G. S., Pinkovskiy, M., & Snyder, J. M. Jr, (2015). Voter learning in state primary elections. American Journal of Political Science, 59(1), 91–108. https://doi.org/10.1111/ajps.12093
   Web of Science ®Google Scholar
• Hudspeth, N. W., Merriman, D. F., Dye, R. F., & Crosby, A. W. (2015). Do troubled times invite cloudy budget reporting? The determinants of general fund expenditure share in US states. Public Budgeting & Finance, 35(4), 68–89. https://doi.org/10.1111/pbaf.12080
   Google Scholar
• Kim, Y., & Sorensen, L. C. (2019). Caught in the crunch: School district financial condition and performance. State and Local Government Review, 51(2), 104–112. https://doi.org/10.1177/0160323X19892047
   Google Scholar
• Kloha, P., Weissert, C. S., & Kleine, R. (2005). Developing and testing a composite model to predict local fiscal distress. Public Administration Review, 65(3), 313–323. https://doi.org/10.1111/j.1540-6210.2005.00456.x
   Web of Science ®Google Scholar
• Klarner, C. (2013). Governors Dataset. http://hdl.handle.net/1902.1/20408 IQSS Dataverse Network [Distributor] V1.
   Google Scholar
• Kopits, G., & Craig, J. (1998). Transparency in government operations. Occasional Paper No. 158. International Monetary Fund.
   Google Scholar
• Kuklinski, J. H., Quirk, P. J., Jerit, J., Schwieder, D., & Rich, R. F. (2000). Misinformation and the currency of democratic citizenship. The Journal of Politics, 62(3), 790–816. https://doi.org/10.1111/0022-3816.00033
   Web of Science ®Google Scholar
• Leiser, S., & Mills, S. (2019). Local government fiscal health: Comparing self‐assessments to conventional measures. Public Budgeting & Finance, 39(3), 75–96. https://doi.org/10.1111/pbaf.12226
   Web of Science ®Google Scholar
• Li, F. (2008). Annual report readability, current earnings, and earnings persistence. Journal of Accounting and Economics, 45(2–3), 221–247. https://doi.org/10.1016/j.jacceco.2008.02.003
   Web of Science ®Google Scholar
• Lindstedt, C., & Naurin, D. (2010). Transparency is not enough: Making transparency effective in reducing corruption. International Political Science Review, 31(3), 301–322. https://doi.org/10.1177/0192512110377602
   Web of Science ®Google Scholar
• Loughran, T., & McDonald, B. (2011). When is a liability not a liability? Textual analysis, dictionaries, and 10‐Ks. The Journal of Finance, 66(1), 35–65. https://doi.org/10.1111/j.1540-6261.2010.01625.x
   Web of Science ®Google Scholar
• McCumber, J. (2005). Reshaping reason: Toward a new philosophy. Indiana University Press.
   Google Scholar
• Maher, C. S., & Deller, S. C. (2011). Measuring municipal fiscal condition: Do objective measures of fiscal health relate to subjective measures? Journal of Public Budgeting, Accounting & Financial Management, 23(3), 427–450. https://doi.org/10.1108/JPBAFM-23-03-2011-B006
   Google Scholar
• Marsh, T. L., Montondon, L. G., & Daniels, J. (2004). Readability of award winning popular annual financial reports. Journal of Accounting & Finance Research, 12(2), 32–39.
   Google Scholar
• Matheus, R., & Janssen, M. (2020). A systematic literature study to unravel transparency enabled by open government data: The window theory. Public Performance & Management Review, 43(3), 503–534.
   Web of Science ®Google Scholar
• Meijer, A. (2013). Understanding the complex dynamics of transparency. Public Administration Review, 73(3), 429–439. https://doi.org/10.1111/puar.12032
   Web of Science ®Google Scholar
• Meijer, A., ’t Hart, P., & Worthy, B. (2018). Assessing government transparency: An interpretive framework. Administration & Society, 50(4), 501–526. https://doi.org/10.1177/0095399715598341
   Web of Science ®Google Scholar
• Park, Y. J., Kim, Y., & Chen, G. (2022). Financial capacity and organizational stability in U.S. local governments. Public Management Review, 24(3), 418–441. https://doi.org/10.1080/14719037.2020.1834606
   Web of Science ®Google Scholar
• Patrick, P. A. (2010). The adoption of GASB 34 in small, rural, local governments. Journal of Public Budgeting, Accounting & Financial Management, 22(2), 227–249. https://doi.org/10.1108/JPBAFM-22-02-2010-B004
   Google Scholar
• Peskowitz, Z. (2018). Selection and incentives in the electoral security‐constituency communication relationship. Legislative Studies Quarterly, 43(2), 275–304. https://doi.org/10.1111/lsq.12195
   Web of Science ®Google Scholar
• Pina, V., Torres, L., & Royo, S. (2007). Are ICTs improving transparency and accountability in the EU regional and local governments? An empirical study. Public Administration, 85(2), 449–472. https://doi.org/10.1111/j.1467-9299.2007.00654.x
   Web of Science ®Google Scholar
• Rich, K. T., Roberts, B. L., & Zhang, J. X. (2018). Linguistic tone and internal control reporting: Evidence from municipal management discussion and analysis disclosures. Journal of Governmental & Nonprofit Accounting, 7(1), 24–54. https://doi.org/10.2308/ogna-52326
   Google Scholar
• Ritz, A., Brewer, G. A., & Neumann, O. (2016). Public service motivation: A systematic literature review and outlook. Public Administration Review, 76(3), 414–426. https://doi.org/10.1111/puar.12505
   Web of Science ®Google Scholar
• Popkin, S. L. (1991). The reasoning voter: Communication and persuasion in presidential campaigns. University of Chicago Press.
   Google Scholar
• Rubin, M. M., & Willoughby, K. (2009). Financial management grades for the states: A prospective use. Public Budgeting & Finance, 29(1), 49–67. https://doi.org/10.1111/j.1540-5850.2009.00923.x
   Google Scholar
• Sunder, S. (2009). True and fair as the moral compass of financial reporting. Research on Professional Responsibility and Ethics in Accounting, 14, 3–11.
   Google Scholar
• Svensson, J. (2005). Eight questions about corruption. Journal of Economic Perspectives, 19(3), 19–42. https://doi.org/10.1257/089533005774357860
   Web of Science ®Google Scholar
• Tetlock, P. C. (2007). Giving content to investor sentiment: The role of media in the stock market. The Journal of Finance, 62(3), 1139–1168. https://doi.org/10.1111/j.1540-6261.2007.01232.x
   Web of Science ®Google Scholar
• Tetlock, P. C., Saar‐Tsechansky, M., & Macskassy, S. (2008). More than words: Quantifying language to measure firms’ fundamentals. The Journal of Finance, 63(3), 1437–1467. https://doi.org/10.1111/j.1540-6261.2008.01362.x
   Web of Science ®Google Scholar
• Wang, X., Dennis, L., & Tu, Y. S. J. (2007). Measuring financial condition: A study of U.S. states. Public Budgeting & Finance, 27(2), 1–21. https://doi.org/10.1111/j.1540-5850.2007.00872.x
   Google Scholar
• Welbers, K., Van Atteveldt, W., & Benoit, K. (2017). Text analysis in R. Communication Methods and Measures, 11(4), 245–265. https://doi.org/10.1080/19312458.2017.1387238
   Web of Science ®Google Scholar
• Welch, E. W., Hinnant, C. C., & Moon, M. J. (2004). Linking citizen satisfaction with e-government and trust in government. Journal of Public Administration Research and Theory, 15(3), 371–391. https://doi.org/10.1093/jopart/mui021
   Web of Science ®Google Scholar
• Yu, J., Wei, W., & Butler, J. S. (2021). Fiscal transparency and government credit quality: Evidence from the U.S. Public Performance & Management Review, 44(2), 378–403. https://doi.org/10.1080/15309576.2020.1807368
   Web of Science ®Google Scholar
• Yusuf, J. E., & Jordan, M. M. (2017). Accessibility of the management’s discussion and analysis to citizen users of government financial reports. Public Budgeting & Finance, 37(4), 74–91. https://doi.org/10.1111/pbaf.12170
   Web of Science ®Google Scholar