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Investor distraction and multi-dimensional financial narrative

Miles B. Gietzmann et al.

Review of Accounting Studies2026https://doi.org/10.1007/s11142-026-09950-7article
FT50AJG 4ABDC A*
Weight
0.50

Abstract

This paper investigates how institutional investor distraction affects the assimilation of narrative content in the MD&A section of the 10-K filing. We introduce the Aggregate Attribute Index (AAI) and an alternative formulation (AltAAI), which capture linguistic features beyond tone to provide a broader measure of corporate narrative richness. Using machine learning and natural language processing, we analyze U.S. firms that follow a staggered reporting strategy, releasing quantitative results before full narrative disclosures. This design isolates the incremental effects of complex language when other portfolio events distract investors. We find that narrative complexity does not trigger short-term return responses but significantly affects stock prices over longer horizons. Complexity moderates how and when attention-constrained investors adjust prices. These effects are not captured by dictionary-based tone or readability metrics, underscoring the distinct role of multi-dimensional attributes in shaping delayed market reactions and price discovery.

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https://doi.org/https://doi.org/10.1007/s11142-026-09950-7

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@article{miles2026,
  title        = {{Investor distraction and multi-dimensional financial narrative}},
  author       = {Miles B. Gietzmann et al.},
  journal      = {Review of Accounting Studies},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1007/s11142-026-09950-7},
}

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Investor distraction and multi-dimensional financial narrative

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.