Analyzing the Influence of Headline News on Financial Markets

Abstract

Text mining, one of the emerging fields of data mining, aims at acquiring useful knowledge from text data. In the asset management in finance task domain, although there exist various text data like accounting settlement or analysts' reports, few research and development have been conducted. In this paper, we will explore the feasibility to extract valuable knowledge for asset management through text mining using analyst reports as text data. As a result of intensive analyses, we found out that we have a chance to get excess return by applying text mining method to investment. This result suggests that analyses through text mining method is effective.