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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

Financial news plays a critical role in the information diffusion process in financial markets and is a known driver of stock prices. However, the information in each news article is not necessarily self-contained, often requiring a broader…

Computational Engineering, Finance, and Science · Computer Science 2025-09-17 Ross Koval , Nicholas Andrews , Xifeng Yan

We examine how large language models (LLMs) interpret historical stock returns and compare their forecasts with estimates from a crowd-sourced platform for ranking stocks. While stock returns exhibit short-term reversals, LLM forecasts…

General Finance · Quantitative Finance 2024-09-19 Shuaiyu Chen , T. Clifton Green , Huseyin Gulen , Dexin Zhou

The real estate market is vital to global economies but suffers from significant information asymmetry. This study examines how Large Language Models (LLMs) can democratize access to real estate insights by generating competitive and…

Artificial Intelligence · Computer Science 2025-10-01 Margot Geerts , Manon Reusens , Bart Baesens , Seppe vanden Broucke , Jochen De Weerdt

MarketSenseAI is a novel framework for holistic stock analysis which leverages Large Language Models (LLMs) to process financial news, historical prices, company fundamentals and the macroeconomic environment to support decision making in…

Computational Finance · Quantitative Finance 2025-10-06 George Fatouros , Kostas Metaxas , John Soldatos , Manos Karathanassis

This study investigates the use of large language models (LLMs) for story point estimation. Story points are unitless, project-specific effort estimates that help developers on the scrum team forecast which product backlog items they plan…

Software Engineering · Computer Science 2026-04-09 Pranam Prakash Shetty , Adarsh Balakrishnan , Mengqiao Xu , Xiaoyin Xi , Zhe Yu

Journalists face mounting challenges in monitoring ever-expanding digital information streams to identify newsworthy content. While traditional automation tools gather information at scale, they struggle with the editorial judgment needed…

Human-Computer Interaction · Computer Science 2025-10-01 Nick Hagar , Ethan Silver , Clare Spencer , Nicholas Diakopoulos

Large language models (LLMs) play a vital role in almost every domain in today's organizations. In the context of this work, we highlight the use of LLMs for sentiment analysis (SA) and explainability. Specifically, we contribute a novel…

Artificial Intelligence · Computer Science 2024-08-13 Lior Limonad , Fabiana Fournier , Juan Manuel Vera Díaz , Inna Skarbovsky , Shlomit Gur , Raquel Lazcano

For a financial analyst, the question and answer (Q\&A) segment of the company financial report is a crucial piece of information for various analysis and investment decisions. However, extracting valuable insights from the Q\&A section has…

Computation and Language · Computer Science 2023-10-18 Bhaskarjit Sarmah , Tianjie Zhu , Dhagash Mehta , Stefano Pasquali

Increasingly, studies are exploring using Large Language Models (LLMs) for accelerated or scaled qualitative analysis of text data. While we can compare LLM accuracy against human labels directly for deductive coding, or labeling text, it…

Computation and Language · Computer Science 2026-04-23 Melanie Subbiah , Haaris Mian , Nicholas Deas , Ananya Mayukha , Dan P. McAdams , Kathleen McKeown

This paper investigates whether large language models (LLMs) can generate reliable stock market predictions. We evaluate four state-of-the-art models - ChatGPT, Gemini, DeepSeek, and Perplexity - across three prompting strategies: a naive…

Trading and Market Microstructure · Quantitative Finance 2026-04-21 Ricardo Crisostomo , Diana Mykhalyuk

This paper investigates the role of expert-designed hint in enhancing sentiment analysis on financial social media posts. We explore the capability of large language models (LLMs) to empathize with writer perspectives and analyze…

Computation and Language · Computer Science 2024-09-27 Chung-Chi Chen , Hiroya Takamura , Ichiro Kobayashi , Yusuke Miyao

This paper describes experiments on fine-tuning a small language model to generate forecasts of long-horizon stock price movements. Inputs to the model are narrative text from 10-K reports of large market capitalization companies in the S&P…

Statistical Finance · Quantitative Finance 2024-10-28 Joel R. Bock

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

As large language models (LLMs) converge towards similar capabilities, the key to advancing their performance lies in identifying and incorporating valuable new information sources. However, evaluating which text collections are worth the…

Computation and Language · Computer Science 2026-01-09 Tristan Karch , Luca Engel , Philippe Schwaller , Frédéric Kaplan

Security operation centers (SOCs) often produce analysis reports on security incidents, and large language models (LLMs) will likely be used for this task in the near future. We postulate that a better understanding of how veteran analysts…

Cryptography and Security · Computer Science 2026-04-09 Hiroyuki Okada , Tatsumi Oba , Naoto Yanai

This paper addresses the critical disconnect between prediction and decision quality in portfolio optimization by integrating Large Language Models (LLMs) with decision-focused learning. We demonstrate both theoretically and empirically…

Portfolio Management · Quantitative Finance 2025-02-04 Yoontae Hwang , Yaxuan Kong , Stefan Zohren , Yongjae Lee

Large Language Models (LLMs) are evolving into autonomous trading agents, yet existing benchmarks often overlook the interplay between architectural reasoning and strategy consistency. We propose Strat-LLM, a framework grounded in…

Artificial Intelligence · Computer Science 2026-05-08 Wenliang Huang , Zengyi Yu

This study empirically tests the $\textit{Narrative Economics}$ hypothesis, which posits that narratives (ideas that are spread virally and affect public beliefs) can influence economic fluctuations. We introduce two curated datasets…

Computation and Language · Computer Science 2025-02-12 Almog Gueta , Amir Feder , Zorik Gekhman , Ariel Goldstein , Roi Reichart

We investigate the efficacy of large language models (LLMs) in sentiment analysis of U.S. financial news and their potential in predicting stock market returns. We analyze a dataset comprising 965,375 news articles that span from January 1,…

Computational Finance · Quantitative Finance 2024-12-30 Kemal Kirtac , Guido Germano