Author's School

Olin Business School

Author's Department

Finance

Language

English (en)

Date of Award

Spring 5-15-2023

Degree Type

Dissertation

Degree Name

Doctor of Business Administration (DBA)

Chair and Committee

Guofu Zhou

Committee Members

Xing Huang, Xiumin Martin,

Abstract

This research paper investigates the role of managerial sentiment in predicting future stockreturns by constructing firm characteristics based on sentiment words. Through the analysis of all Securities and Exchange filings submitted by publicly traded companies from 2001 to 2022, this study demonstrates that certain sentiment words provide a robust and significant cross-sectional predictor of future monthly stock returns. The paper utilizes a unique ap- proach by leveraging a long time frame and analyzing all available filings. This allows for a comprehensive analysis of the impact of managerial sentiment on stock returns, highlighting the importance of sentiment analysis in financial markets.

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