Journal ArticleDOI
Using Annual Report Sentiment as a Proxy for Financial Distress in U.S. Banks
TLDR
In this article, the authors argue that current measures of bank distress find marginal value in predictive variables beyond a capital adequacy ratio and tend to miss extreme events impacting the entire sector.Abstract:
Current measures of bank distress find marginal value in predictive variables beyond a capital adequacy ratio and tend to miss extreme events impacting the entire sector. The authors advoca...read more
Citations
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Journal ArticleDOI
Applications of Artificial Intelligence in commercial banks – A research agenda for behavioral finance
TL;DR: By using AI, commercial banks can reduce losses in lending, increase security in processing payments, automate compliance-related work, and improve customer targeting, according to a structured literature review.
Journal ArticleDOI
Using textual analysis to identify merger participants: Evidence from the U.S. banking industry
Apostolos G. Katsafados,Ion Androutsopoulos,Ilias Chalkidis,Emmanouel Fergadiotis,George N. Leledakis,Emmanouil G. Pyrgiotakis +5 more
TL;DR: This paper used the sentiment of annual reports to gauge the likelihood of a bank to participate in a merger transaction and found that a higher frequency of positive (negative) words in a bank's annual report relates to a higher probability of becoming a bidder (target).
Journal ArticleDOI
Do narrative-related disclosures predict corporate failure? Evidence from UK non-financial publicly quoted firms
TL;DR: The authors explored the explanatory power of narrative-related disclosures in predicting corporate failure and found that failure-related narrative disclosures significantly predict firms' failure up to two years ahead of actual failure.
Journal ArticleDOI
A Two-Dimensional Sentiment Analysis of Online Public Opinion and Future Financial Performance of Publicly Listed Companies
TL;DR: The empirical results tended to support the two hypotheses that there is a positive association between the valence or arousal-augmented valence of online public opinion about the listed companies and their future financial performance.
Journal ArticleDOI
Textual analysis and corporate bankruptcy: A financial dictionary-based sentiment approach
Ba-Hung Nguyen,Van-Nam Huynh +1 more
TL;DR: The authors tried to quantify textual data as meaningful predictors for the future financial performance or stock returns, however, little works in textual analysis for the financial reports are trying to quantify text data.
References
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Journal ArticleDOI
Financial ratios, discriminant analysis and the prediction of corporate bankruptcy
TL;DR: In this paper, a set of financial and economic ratios are investigated in a bankruptcy prediction context wherein a multiple discriminant statistical methodology is employed, and the data used in the study are limited to manufacturing corporations, where an initial sample of sixty-six firms is utilized to establish a function which best discriminates between companies in two mutually exclusive groups: bankrupt and nonbankrupt firms.
Journal ArticleDOI
Industry costs of equity
Eugene F. Fama,Kenneth R. French +1 more
TL;DR: In this paper, the authors show that standard errors of more than 3.0% per year are typical for both the CAPM and the three-factor model of Fama and French (1993), and these large standard errors are the result of uncertainty about true factor risk premiums and imprecise estimates of the loadings of industries on the risk factors.
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Financial ratios and the probabilistic prediction of bankruptcy
TL;DR: In this paper, the authors present some empirical results of a study predicting corporate failure as evidenced by the event of bankruptcy, and the methodology is one of maximum likelihood estimation of the so-called conditional logit model, in which the data set used in this study is from the seventies (1970-76).
Journal ArticleDOI
Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?
Steven N. Kaplan,Luigi Zingales +1 more
TL;DR: In this article, the authors investigated the relationship between financing constraints and investment-cash flow sensitivities by analyzing the firms identified by Fazzari, Hubbard, and Petersen as having unusually high investment cash flow sensitivity.
Journal ArticleDOI
Financial Ratios As Predictors Of Failure
TL;DR: In this article, the authors focus on the use of ratios as predictors of failure, defined as the inability of a firm to pay its financial obligations as they mature, and demonstrate that a firm is said to have failed when any of the following events have occurred.