Textual analysis in 10-K: evidence from syndicated loan

• Main Authors: Wu, Che-Ming, 吳哲銘
• Other Authors: 詹凌菁
• Format: Others
• Language: en_US
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/4h7t55

碩士 === 國立政治大學 === 會計學系 === 106 === In the past decade, there has been a tremendous wave of interest in the field of textual analysis. However, researchers have concentrated on the relationship between textual sentiment expression and the equity market. There has thus far been relatively little research into the debt market. It is my purpose in this study to investigate whether corporation-expressed textual sentiment affects the features of the syndicated loan. Using a sample of U.S. borrowers in the syndicated loan market, the results show that negative textual sentiment expressed in 10-K filings is positively associated with loan spreads and the probability of loans being secured, while negatively associated with loan amounts and maturity. Moreover, I find that negative sentiment is positively associated with the probability of covenant violation. To conclude, this study may be of importance in exploring the association between textual sentiment expression and debt contract terms, as well as in providing borrowers with a better understanding of how lenders respond to their sentimental expression in 10-K filings.