Extension: 8-K Negativity Percentage
As a follow-up to last week's 8-K Negativity Percentage blog last week, we developed a threshold strategy utilizing the Negativity Percentage. Instead of categorizing companies into tertiles, we employed a static threshold of 60% to identify companies with exceedingly negative filings. We found there is a correlation between negative 8-K filings and subsequent poor market performance. Check it out and click the link below!