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 text sentiment over time. We then apply WOLVES to investigate ... Read More

When a firm discloses important corporate information, analysts are usually right on their tail with reports about what was said. A new study has confirmed that these reports serve a valuable function for investors because they interpret, flesh out and confirm managers’ statements. The study, by Allen Huang, Reuven Lehavy, Amy Zang and Rong Zheng, used an ... Read More

Firms such as Amazon and Netflix have devised recommendation systems that help consumers to quickly wade through the mountains of information at their fingertips and zero in on the items they might be interested in buying. These systems provide a valuable service and yet, their potential is still not fully developed. Rong Zheng of HKUST and his co-authors ... Read More