Description:
We track and measure the entrepreneurial spirits reflected in the annual reports of listed firms in the United States and examine whether the terms that reflect entrepreneurialism can predict firms’ success in the short (one year), medium (3-5 years) and long run (10 years). Firm performance (stock return, sales, and profit growth) and the terms used by successful firms (e.g. Amazon, Google (Alphabet), Priceline, Facebook, NVidia and 3M) will be compared to those which are considered as less successful. Candidates for the focused terms may include “research”, “teamwork”, “entrepreneurial”, “creativity”, “innovation”, “drive”, “brand”, “technology”, “intellectual”, “growth”, “patents’, “trademarks”.  However, up to now, all academic articles are geared towards identifying how the tone of disclosure (whether optimistic or pessimistic, or whether the disclosure reflects greater uncertainty) affects stock return. We do not find any work attempting to locate whether a firm is entrepreneurial.

Expected deliverable:
We hope the deep learning methodology will provide improvements over the existing methods. A practical end product will be an interesting investment strategy based on identifying the entrepreneurial spirit of the firm.

Project leader:
Dr. Chi Wai LING
Tel: 39635532
Email: davidling@hsu.edu.hk

Team members:
Prof. Lam Chee Keung and his colleagues, Prof. Chin and his colleagues

News:

• 9/10/2017 10k_statistics
• 12/9/2017 Assigning entrepreneurship score and Google knowledge base
• 24/8/2017 Financial documents sentiment
• 15/8/2017 Financial news sources and doc2vec
• 25/7/2017 First meeting
• 17/7/2017 Textural sentiment in finance