5. CONCLUSION AND DISCUSSION
5.2 LIMITATION AND FUTURE RESEARCH WORK
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5.2 LIMITATION AND FUTURE RESEARCH WORK
This study uses 90 samples to evaluate the market price movement and there is relatively fewer sample selected compare to other research. Due to limitation of period and computerized tools to help analyzed data, this study is unable to find all variables statistically significant. Consequently, if the number of companies and textual-analysis tools can be expanded and specified, the market reaction to the financial news articles and footnotes to financial statements can be identified further. When it comes to textual analysis in the beginning phase, it requires lots of manual work to help better train data to retrieve features to be included for machine learning. Therefore, if financial news articles being evaluated as well as footnotes to financial statements are more thoroughly read and if one can include third parties, such as other professionals or experts, to help analyze the information content in both the news articles and annual financial statements, the findings and conclusion may be elaborated further.
In addition, this study does not separate footnotes to financial statements into different segments, only scores them into a single figure. The scoring criteria brought out by the FSC may be biased to companies without some kind of assets and will later become requirements instead of suggestions, making these unsuitable for scoring. If one can utilize other content analysis methods especially suitable for processing footnotes to financial statements, he may be able to decide which part of the footnotes to financial statements will generate public interests and therefore combine his findings into future research.
The CAR calculation focuses on the stock price movement compared to the market.
In addition to stock price changes, the trading volume may also be affected. One can includes the changes of trading volume as well in future research. This study selects [0, +5] time window to calculate CAR because of the focus on the post-release dates of the
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annual financial statements. For future research, one can expands and compare the pre- and post-release effects of the annual financial statements by using [-1, +1] or [-3, +3]
time window and further uses the built model to testify and compare results of different period.
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APPENDIX
Appendix 1. Footnotes Scoring Example