SENTIMENT ANALYSIS OF SEC FILINGS USING Loughran-McDonald Master Dictionary

This article covers the sentiment analysis of SEC filings like 10-K (filed annually) and 10-Q (filed quarterly) using the Loughran-McDonald Master Dictionary.

Sentiment analysis in finance is more nuanced than in other areas. News like layoffs have a negative sentiment attached to it, but it is good news for the stock market as the company is cutting down on its capital expenditure. Thus, it will free up some cashflows and improve the valuations for the company. So it is challenging to use pre-trained…