Corporate Evaluation from Stakeholders by ECS-BERT model and Financial Performance

Abstract

With growing interest in stakeholder capitalism, ESG, and the SDGs, quantifying a company's social reputation is becoming more important. It is useful not only for investors but also for various stakeholders to evaluate the content of the integrated report, which describes a message from companies to stakeholders. In this study, we propose IR score that quantifies the goodness of the integrated report by a BERT model. The BERT model is fine-tuned using ECS which is a score that quantifies the evaluation from stakeholders. We analyze the relationship between the IR score and the financial characteristics of the company. As a result of empirical analysis, we found that the IR score is related to the profitability of the company.