Which would you predict would have more positive sentiment in a 10-K
Question:Which would you predict would have more positive sentiment in a 10-K, the financial statements or the MD&A (management discussion and analysis) of the financial statements? More positive sentiment in the footnotes or MD&A? Why?Answer:The financial statements and the footnotes are much more boilerplate with plenty of rules and legalistic jargon and reflect past performance. The MD&A (management discussion and analysis) of the financial statements is also in the 10-K and is heavily reviewed by the legal team. However, the MD&A also reflects expectations of the future and how the company is expected to perform in the near future. Management is, on average, more optimistic about the near future than the recent past. We would expect the MD&A section to be associated with more positive sentiment than the footnotes or the financial statements.
页:
[1]