Could Textual Features Offer Incremental Information to Financial Distress Prediction? Evidence from the Listed Firm in China

<table class="table-group" id="tab2"><tr><td><table class="table"><tr><td class="thead-hr" colspan="3"><hr/></td></tr><tr class="thead"><td class="align_left">Textual feature</td><td class="align_center">Measurement</td><td class="align_center">Reference</td></tr><tr><td class="thead-hr" colspan="3"><hr/></td></tr><tr><td class="align_left">Sentiment tones (<i>T</i><sub>st</sub>)</td><td class="align_center">(Positive word frequency − negative word frequency)/total word frequency</td><td class="align_center">[<a href="/journals/sp/2023/8779142/#B40" target="_blank">40</a>, <a href="/journals/sp/2023/8779142/#B41" target="_blank">41</a>]</td></tr><tr><td class="align_left">Performance self-attribution (<i>T</i><sub>sa</sub>)</td><td class="align_center">SSAB = (IP − EP + EN − IN)/(IP + EP + EN + IN)</td><td class="align_center">[<a href="/journals/sp/2023/8779142/#B17" target="_blank">17</a>, <a href="/journals/sp/2023/8779142/#B49" target="_blank">49</a>, <a href="/journals/sp/2023/8779142/#B50" target="_blank">50</a>]</td></tr><tr><td class="align_left">Forward-looking depth (<i>T</i><sub>de</sub>)</td><td class="align_center">Frequency of sentences containing adverb</td><td class="align_center">[<a href="/journals/sp/2023/8779142/#B17" target="_blank">17</a>]</td></tr><tr><td class="align_left">Readability (<i>T</i><sub>re</sub>)</td><td class="align_center">MD&amp;A total word count + average sentence length + the density of adjunctive conjunction</td><td class="align_center">[<a href="/journals/sp/2023/8779142/#B47" target="_blank">47</a>]</td></tr><tr class="table-tr"><td colspan="3"><hr class="tbody-hr"/></td></tr></table></td></tr></table>

<div>Definition and measurement of each text feature.</div>

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Table 2

Table 2: Could Textual Features Offer Incremental Information to Financial Distress Prediction? Evidence from the Listed Firm in China 