The Effects of Sentiment Evolution in Financial Texts: A Word Embedding Approach

• Published in: Journal of management information systems Vol. 41; no. 1; pp. 178 - 205
• Main Authors: Zheng, Jiexin, Ng, Ka Chung, Zheng, Rong, Tam, Kar Yan
• Format: Journal Article
• Language: English
• Published: Abingdon Routledge 02.01.2024; Taylor & Francis Ltd
• Subjects: Algorithms; Annual reports; Earnings; Embedding; Evolution; financial communication; financial texts; financial word lists; market sentiment; News; sentiment evolution; textual analysis; word corpora; word embedding; Words

We examine the evolutionary effects of sentiment words in financial text and their implications for various business outcomes. We propose an algorithm called Word List Vector for Sentiment (WOLVES) that leverages both a human-defined sentiment word list and the word embedding approach to quantify te...