Beyond the numbers: The effect of 10-K tone on firms' performance predictions using text analytics.

•Companies mandatorily disclose 10-K every fiscal year-end for investors.•Plain English Rule for 10-K may mislead strategic reporting or cognitive bias.•We examine the effect of 10-K narrative sections on firms’ performance.•We determine if 10-K narrative’s tones changed in line with current earning levels.•We focus on overtone stated companies relative to their current performance.