Future Finance
Sweet-Talking CEOs Are Starting to Outsmart the Robot Analysts
- Study finds companies alter words to cater to listening algos
- Emphasis on positivity as negative phrases get ditched
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A new era of robots reading financial statements and machines monitoring earnings calls means analysts no longer need to sweat a company’s every last word. For corporate leaders, it’s quite the opposite.
Company executives have started to adapt their statements and even their delivery to cater to the algorithms parsing text and speech for trading signals, researchers at Georgia State University and Columbia University have found.