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Investor Reaction to Financial Disclosures across Topics: An Application of Latent Dirichlet Allocation*

Investor Reaction to Financial Disclosures across Topics: An Application of Latent Dirichlet Allocation*

ABSTRACT This article provides a holistic study of how stock prices vary in their response to financial disclosures across different topics. Thereby, we specifically shed light into the extensive amount of filings for which no a priori categorization of their content exists. For this purpose, we utilize an approach from …