Disclosure Language Analysis

Methodology

Hedging Trajectory (0-100): Maps hedging_level (none=0, low=33, moderate=67, heavy=100) and averages across announcements. Higher score indicates heavier hedging language.

Sentiment Volatility (0-100): Standard deviation of sentiment scores. A std dev of 0.5 or higher maps to 100. More volatile sentiment suggests inconsistent messaging.

Buried Risk Frequency (0-100): Percentage of announcements containing buried risk flags. If 50%+ of announcements contain buried risks, the score is 100.

Guidance Consistency (0-100): Counts direction changes in guidance (upgrade/downgrade/maintain). More frequent changes indicate less consistent forward guidance.

Forward-Looking Density (0-100): Based on forward-looking statement count in earnings reports. 20+ statements maps to 0 (transparent); 0 statements maps to 100.

The overall score is the simple average of all 5 dimensions. Companies with fewer than 5 scored announcements are excluded. This analysis describes data patterns and does not constitute financial advice or a judgment of company quality.