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Financial sentiment has become a crucial yet complex concept in finance, increasingly used in market forecasting and investment strategies. Despite its growing importance, there remains a need to define and understand what financial…

Statistical Finance · Quantitative Finance 2025-04-07 Kemal Kirtac , Guido Germano

The rapid advancement of Large Language Models (LLMs) has spurred discussions about their potential to enhance quantitative trading strategies. LLMs excel in analyzing sentiments about listed companies from financial news, providing…

Computation and Language · Computer Science 2024-05-07 Haohan Zhang , Fengrui Hua , Chengjin Xu , Hao Kong , Ruiting Zuo , Jian Guo

Large Language Models (LLMs) have recently displayed their extraordinary capabilities in language understanding. However, how to comprehensively assess the sentiment capabilities of LLMs continues to be a challenge. This paper investigates…

Computation and Language · Computer Science 2025-02-17 Yang Liu , Xichou Zhu , Zhou Shen , Yi Liu , Min Li , Yujun Chen , Benzi John , Zhenzhen Ma , Tao Hu , Zhi Li , Zhiyang Xu , Wei Luo , Junhui Wang

Large language models (LLMs) are increasingly deployed in financial contexts, raising critical concerns about reliability, alignment, and susceptibility to adversarial manipulation. While prior finance-related benchmarks assess LLMs'…

Computation and Language · Computer Science 2026-05-12 Xiaoyu Hu , Jinman Zhao

This article presents a comparative study of large language models (LLMs) in the task of sentiment analysis of financial market news. This work aims to analyze the performance difference of these models in this important natural language…

Statistical Finance · Quantitative Finance 2025-10-21 Lucas Eduardo Pereira Teles , Carlos M. S. Figueiredo

Financial sentiment analysis refers to classifying financial text contents into sentiment categories (e.g. positive, negative, and neutral). In this paper, we focus on the classification of financial news title, which is a challenging task…

Computation and Language · Computer Science 2024-01-11 Wei Luo , Dihong Gong

In finance, Large Language Models (LLMs) face frequent knowledge conflicts arising from discrepancies between their pre-trained parametric knowledge and real-time market data. These conflicts are especially problematic in real-world…

Portfolio Management · Quantitative Finance 2025-10-20 Hoyoung Lee , Junhyuk Seo , Suhwan Park , Junhyeong Lee , Wonbin Ahn , Chanyeol Choi , Alejandro Lopez-Lira , Yongjae Lee

Sentiment analysis is a vital tool for uncovering insights from financial articles, news, and social media, shaping our understanding of market movements. Despite the impressive capabilities of large language models (LLMs) in financial…

Computation and Language · Computer Science 2023-06-23 Boyu Zhang , Hongyang Yang , Xiao-Yang Liu

Large language models (LLMs) are increasingly deployed in quantitative finance for stock price forecasting. This review synthesizes recent applications of LLMs in this domain, including extracting sentiment from financial news and social…

Pricing of Securities · Quantitative Finance 2026-05-08 Olivia Zhang , Zhilin Zhang

Financial sentiment analysis is critical for valuation and investment decision-making. Traditional NLP models, however, are limited by their parameter size and the scope of their training datasets, which hampers their generalization…

Computation and Language · Computer Science 2023-11-07 Boyu Zhang , Hongyang Yang , Tianyu Zhou , Ali Babar , Xiao-Yang Liu

Financial sentiment analysis plays a crucial role in uncovering latent patterns and detecting emerging trends, enabling individuals to make well-informed decisions that may yield substantial advantages within the constantly changing realm…

Machine Learning · Computer Science 2023-12-15 Sorouralsadat Fatemi , Yuheng Hu

Natural language processing (NLP) has recently gained relevance within financial institutions by providing highly valuable insights into companies and markets' financial documents. However, the landscape of the financial domain presents…

Computation and Language · Computer Science 2024-01-29 Pau Rodriguez Inserte , Mariam Nakhlé , Raheel Qader , Gaetan Caillaut , Jingshu Liu

The impact of non-deterministic outputs from Large Language Models (LLMs) is not well examined for financial text understanding tasks. Through a compelling case study on investing in the US equity market via news sentiment analysis, we…

Trading and Market Microstructure · Quantitative Finance 2023-11-28 Boyang Yu

Recently, large language models (LLMs) with hundreds of billions of parameters have demonstrated the emergent ability, surpassing traditional methods in various domains even without fine-tuning over domain-specific data. However, when it…

Computation and Language · Computer Science 2025-03-10 Xinyu Wei , Luojia Liu

Large Language Models (LLMs) have been employed in financial decision making, enhancing analytical capabilities for investment strategies. Traditional investment strategies often utilize quantitative models, fundamental analysis, and…

General Finance · Quantitative Finance 2025-07-04 Sedigheh Mahdavi , Jiating , Chen , Pradeep Kumar Joshi , Lina Huertas Guativa , Upmanyu Singh

Financial sentiment analysis is crucial for understanding the influence of news on stock prices. Recently, large language models (LLMs) have been widely adopted for this purpose due to their advanced text analysis capabilities. However,…

Computation and Language · Computer Science 2025-06-24 Yixuan Liang , Yuncong Liu , Neng Wang , Hongyang Yang , Boyu Zhang , Christina Dan Wang

Large language models (LLMs) are increasingly used to support the analysis of complex financial disclosures, yet their reliability, behavioral consistency, and transparency remain insufficiently understood in high-stakes settings. This…

Computation and Language · Computer Science 2026-01-21 Md Talha Mohsin

Large Language Models (LLMs) are increasingly adopted in financial analysis for interpreting complex market data and trends. However, their use is challenged by intrinsic biases (e.g., risk-preference bias) and a superficial understanding…

Computation and Language · Computer Science 2024-07-02 Yuhang Zhou , Yuchen Ni , Yunhui Gan , Zhangyue Yin , Xiang Liu , Jian Zhang , Sen Liu , Xipeng Qiu , Guangnan Ye , Hongfeng Chai

Selecting language models in business contexts requires a careful analysis of the final financial benefits of the investment. However, the emphasis of academia and industry analysis of LLM is solely on performance. This work introduces a…

Artificial Intelligence · Computer Science 2024-05-29 Geraldo Xexéo , Filipe Braida , Marcus Parreiras , Paulo Xavier

Large language models (LLMs), including ChatGPT, can extract profitable trading signals from the sentiment in news text. However, backtesting such strategies poses a challenge because LLMs are trained on many years of data, and backtesting…

General Finance · Quantitative Finance 2023-10-02 Paul Glasserman , Caden Lin
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