Source: https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A6724907156841275392
National Bureau of Economic Research: #AI #MachineLearning: How to Talk When a Machine is Listening: #Corporate #Disclosure in the Age of AI:
#Paper: https://lnkd.in/ejY8p3r : #PDF https://lnkd.in/ePHWEKA :
This paper analyzes how corporate disclosure has been reshaped by #machine #processors, employed by #algorithmic #traders, #robot #investment #advisors, and #quantitative #analysts. Our findings indicate that increasing machine and AI readership, proxied by machine downloads, motivates firms to prepare filings that are more friendly to #machine #parsing and #processing. Moreover, firms with high expected machine downloads manage #textual #sentiment and #audio #emotion in ways catered to machine and AI readers, such as by differentially avoiding words perceived as negative by #computational #algorithms as compared to those by human readers, and by exhibiting speech emotion favored by machine learning software processors. While existing research has explored how investors and researchers apply machine learning and computational tools to quantify qualitative information from disclosure and news, this study is the first to identify and analyze the #feedback #effect on corporate disclosure decisions, i.e., how companies adjust the way they talk knowing that machines are listening.
