Explainable Risk Classification in Financial Reports

arXiv:2405.01881v1 Announce Type: cross
Abstract: Every publicly traded company in the US is required to file an annual 10-K financial report, which contains a wealth of information about the company. In this paper, we propose an explainable deep-learning model, called FinBERT-XRC, that takes a 10-K report as input, and automatically assesses the post-event return volatility risk of its associated company. In contrast to previous systems, our proposed model simultaneously offers explanations of its classification decision at three different levels: the …

abstract arxiv classification cs.lg event every file financial information paper q-fin.rm report reports risk the company type wealth