Language In Earning Calls Reached Peak Negativity Around The 2008 Financial Crisis
In 2008, nearly 15% of the total sentiment score was derived from words that had negative connotations That negativity score has dropped by around 66% to ~5% of the overall sentiment in 2018
We performed a sentiment analysis of Earnings Calls Transcripts dating back to 2005. Based on the language used by the executives, our algorithms provided a positive and negative score to each statement. The negative score peaks around the 2008 financial crisis and the market slowdown that followed.