Abstract
Companies have long sought to detect financial risks and prevent crises in their business activities. Investors also have a great need to identify risks and utilize them for investment. Thus, several studies have attempted to detect financial risk. However, these studies had limitations in that various data were not exploited and diverse perspectives of the firm were not reflected. This can lead to wrong choices for investment. Thus, the purpose of this study was to propose risk signal prediction models based on firm data and opinion mining, reflecting both the perspectives of firms and investors. Furthermore, we developed a process to obtain real time firm related data and convenience visualization. To develop this process, a credit event was defined as an event that led to a critical risk of the firm. In the next step, the firm risk score was calculated for a firm having a possible credit event. This score was calculated by combining the firm activity score and opinion mining score. The firm activity score was calculated based on a financial statement and disclosure data indicator, while the opinion mining score was calculated based on a sentiment analysis of news and social data. As a result, the total firm risk grade was derived, and the risk level was proposed. These processes were developed into a system and illustrated by real firm data. The results of this study demonstrate that it is possible to derive risk signals through integrated monitoring indicators and provide useful information to users. This study can help users make decisions. It also provides users an opportunity to identify new investment momentums.
Highlights
Numerous recessions in the past have wreaked havoc on the roots of state-based industries with many negative effects, including economic slowdown
The opinion mining process conducts opinion mining evaluations of companies based on corporate news and community opinions
An intelligent security investment decision support system was developed by linking opinion mining of news data, social data, and corporate data to existing security investments
Summary
Numerous recessions in the past have wreaked havoc on the roots of state-based industries with many negative effects, including economic slowdown. Global threats, such as the 2008 subprime mortgage crisis in the US and the 2016 financial crisis in China, may affect other countries, as well. Several studies have been conducted to predict the possibility of financial accidents through monitoring. If investors can acquire diverse data, they are more likely to make unbiased decisions. If they acquire newer data, they may obtain more favorable results. One of the most important activities in business management is decision-making. A decision-making system that assists in uncertainty during medical diagnosis using a fuzzy system was developed [13]
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