英文摘要 |
First, this study applies BERT (Bidirectional Encoder Representations from Transformers) on Reports to Shareholders (RTS) of the semi-conductor industry in Taiwan. Next, we discuss whether BERT can overcome some weaknesses of traditional text mining tools. Finally, we try to assess the association between the tone in RTS with company’s future financial performance by using sentiment analysis. The empirical result shows that BERT classification accuracy reaches as high as 0.86, which outperforms other techniques. Moreover, by visualizing the operation in BERT, we find that BERT can capture the word association successfully. However, the empirical result fails to show that the sentiment in RTS has significant and positive association with next year’s earnings and change in earnings, which is inconsistent with previous findings. We conjecture that it may be caused by the capital market attributes such as investor’s structure or information transparency in Taiwan, resulting in differences in information content provided by RTS and MD&A. |