Innovative Insights: Impact of Crypto News on Corporate Earnings Through GenAI Models With Bert Framework
DOI:
https://doi.org/10.33423/jaf.v24i5.7440Keywords:
accounting, finance, crypto news, corporate earnings impact, GenAI models, digital assetsAbstract
This study represents a pioneering investigation into cryptocurrency news's repercussions on publicly traded companies' corporate earnings. Leveraging advanced Generative AI (GenAI) models and the BERT framework for sentiment analysis, we meticulously integrated comprehensive data from the Financial Modeling Prep API to employ a rigorous event study methodology alongside advanced machine learning algorithms. Noteworthy insights were derived from the BERT model, shedding light on the rationales behind abnormal returns and facilitating an in-depth analysis of material and immaterial impacts. The study’s findings underscore the significant impact of both positive and negative cryptocurrency news on cumulative abnormal returns (CAR), particularly within firms deeply entrenched in crypto activities. Notably, deliberate news, including official announcements, exerts a more pronounced influence than unintentional market reactions. This innovative approach furnishes actionable insights for financial services, investment management, and corporate communication, providing a framework for enhancing predictive models, investment decisions, and risk management strategies.
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