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We document the capability of large language models (LLMs) like ChatGPT to predict stock market reactions from news headlines without direct financial training. Using post-knowledge-cutoff headlines, GPT-4 captures initial market responses,…

Statistical Finance · Quantitative Finance 2025-10-30 Alejandro Lopez-Lira , Yuehua Tang

Information asymmetry in financial markets, often amplified by strategically crafted corporate narratives, undermines the effectiveness of conventional textual analysis. We propose a novel multimodal framework for financial risk assessment…

Machine Learning · Computer Science 2025-08-27 Xiaoliang Chen , Xin Yu , Le Chang , Teng Jing , Jiashuai He , Ze Wang , Yangjun Luo , Xingyu Chen , Jiayue Liang , Yuchen Wang , Jiaying Xie

This paper moves beyond aggregate measures of retail intensity to explore investment horizon as a distinguishing feature of earnings-related return patterns. Using self-reported holding periods from StockTwits (2010-2021), we observe that…

Pricing of Securities · Quantitative Finance 2025-12-08 Domonkos F. Vamossy

Predicting stock market prices following corporate earnings calls remains a significant challenge for investors and researchers alike, requiring innovative approaches that can process diverse information sources. This study investigates the…

Machine Learning · Computer Science 2025-04-15 Sohom Ghosh , Arnab Maji , Sudip Kumar Naskar

Predicting the economy's short-term dynamics -- a vital input to economic agents' decision-making process -- often uses lagged indicators in linear models. This is typically sufficient during normal times but could prove inadequate during…

General Economics · Economics 2024-05-21 James T. E. Chapman , Ajit Desai

Item nonresponse to financial questions is a persistent source of survey error, especially in interviewer-administered surveys. We examine whether interviewers' expectations about respondents' willingness to report income are associated…

General Economics · Economics 2026-04-14 Moslem Rashidi

Airlines and other industries have been making use of sophisticated Revenue Management Systems to maximize revenue for decades. While improving the different components of these systems has been the focus of numerous studies, estimating the…

Machine Learning · Computer Science 2021-06-17 Greta Laage , Emma Frejinger , Andrea Lodi , Guillaume Rabusseau

Commonly used speech corpora inadequately challenge academic and commercial ASR systems. In particular, speech corpora lack metadata needed for detailed analysis and WER measurement. In response, we present Earnings-21, a 39-hour corpus of…

It is widely speculated that auditors' public forecasts of bankruptcy are, at least in part, self-fulfilling prophecies in the sense that they might actually cause bankruptcies that would not have otherwise occurred. This conjecture is hard…

Methodology · Statistics 2022-06-24 Demetrios Papakostas , P. Richard Hahn , Jared Murray , Frank Zhou , Joseph Gerakos

Natural language processing (NLP) has been widely used in quantitative finance, but traditional methods often struggle to capture rich narratives in corporate disclosures, leaving potentially informative signals under-explored. Large…

Computational Engineering, Finance, and Science · Computer Science 2026-03-17 Chanyeol Choi , Yoon Kim , Yu Yu , Young Cha , V. Zach Golkhou , Igor Halperin , Georgios Papaioannou , Minkyu Kim , Zhangyang Wang , Jihoon Kwon , Minjae Kim , Alejandro Lopez-Lira , Yongjae Lee

This article applies natural language processing (NLP) to extract and quantify textual information to predict stock performance. Using an extensive dataset of Chinese analyst reports and employing a customized BERT deep learning model for…

Computation and Language · Computer Science 2025-03-19 Rui Liu , Jiayou Liang , Haolong Chen , Yujia Hu

This study presents a comparative analysis of deep learning methodologies such as BERT, FinBERT and ULMFiT for sentiment analysis of earnings call transcripts. The objective is to investigate how Natural Language Processing (NLP) can be…

Computation and Language · Computer Science 2026-03-24 Umair Zakir , Evan Daykin , Amssatou Diagne , Jacob Faile

Financial events negatively affect emotional well-being, but large-scale studies examining their impact on online emotional expression using real-time social media data remain limited. To address this gap, we propose analyzing Reddit…

Human-Computer Interaction · Computer Science 2026-04-22 Aryan Ramchandra Kapadia , Niharika Bhattacharjee , Mung Yao Jia , Ishq Gupta , Dong Wang , Koustuv Saha

Earnings calls are hosted by management of public companies to discuss the company's financial performance with analysts and investors. Information disclosed during an earnings call is an essential source of data for analysts and investors…

Statistical Finance · Quantitative Finance 2020-09-04 Zhiqiang Ma , Grace Bang , Chong Wang , Xiaomo Liu

This study explores the influence of FOMC sentiment on market expectations, focusing on cognitive differences between experts and non-experts. Using sentiment analysis of FOMC minutes, we integrate these insights into a bounded rationality…

Econometrics · Economics 2024-11-08 Wonseong Kim , Choong Lyol Lee

Firm disclosures about future prospects are crucial for corporate valuation and compliance with global regulations, such as the EU's MAR and the US's SEC Rule 10b-5 and RegFD. To comply with disclosure obligations, issuers must identify…

Statistical Finance · Quantitative Finance 2023-11-21 Moritz Scherrmann , Ralf Elsas

In time-series analysis, the term "lead-lag effect" is used to describe a delayed effect on a given time series caused by another time series. lead-lag effects are ubiquitous in practice and are specifically critical in formulating…

Statistical Finance · Quantitative Finance 2020-02-04 Katsuya Ito , Kei Nakagawa

Modeling investor behavior is crucial to identifying behavioral coaching opportunities for financial advisors. With the help of natural language processing (NLP) we analyze an unstructured (textual) dataset of financial advisors' summary…

Statistical Finance · Quantitative Finance 2021-07-13 Cynthia Pagliaro , Dhagash Mehta , Han-Tai Shiao , Shaofei Wang , Luwei Xiong

We study association between macroeconomic news and stock market returns using the statistical theory of copulas, and a new comprehensive measure of news based on the indexing of news wires. We find the impact of economic news on equity…

Economics · Quantitative Finance 2014-10-31 Ivan Medovikov

People in the real world often possess vague knowledge of future payoffs, for which quantification is not feasible or desirable. We argue that language, with differing ability to convey vague information, plays an important but less-known…

General Economics · Economics 2025-05-27 Kerry Xiao , Amy Zang