1892. Investment decisions analysis with prospect theory: evidence from earnings conference calls
Invited abstract in session MD-33: Algorithms in Decision Modelling, stream Decision Analysis.
Monday, 14:30-16:00Room: Maurice Keyworth 1.31
Authors (first author is the speaker)
| 1. | Yunze Xie
|
| Alliance Manchester Business School, University of Manchester | |
| 2. | Jian-Bo Yang
|
| Alliance Manchester Business School, The University of Manchester | |
| 3. | Dong-Ling Xu
|
| Alliance Manchester Business School, The University of Manchester |
Abstract
As an important medium for providing information to investors, earnings conference calls play an important role in the stock market. Although many scholars have been dedicated to exploring the textual characteristics of conference call, the process and analysis of textual information is insufficient. The textual characteristics are often directly used to analyze the effect on the stock market, but the real feelings of investors towards them are ignored. Especially for the stock market, it is difficult for investors to act completely rationally, as their reactions to information are influenced by individual psychological characteristics. Therefore, I will introduce prospect theory to analyze the textual characteristics of earnings calls and combine these characteristics based on evidential reasoning model, digging out the information and exploring the real feelings of investors to the greatest degree. Therefore, this research will achieve accurate evaluation of calls by using prospect theory and predict stock returns combined with company financial performance based on interpretable artificial intelligence, and provide support for investor to make decisions on investment.
Keywords
- Accounting
- Artificial Intelligence
- Decision Analysis
Status: accepted
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