Difference Analysis in Bank Risk Attitudes: A Triple Perspectives of Bank Managers, Financial Analysts, and Credit Raters

Abstract

As the three important sources of information in the financial market, the textual information disclosed by bank managers, financial analysts, and credit raters conveys their respective perceptions and judgments of bank risks, which has important value in measuring bank risks. Based on the text information about bank risks disclosed by the managers, financial analysts, and credit raters, this paper studies the differences in risk attitudes in bank annual reports, financial analysts' reports, and credit rating reports from the dimension of sentiment analysis. To summarize the emotional attitude of the text, we first calculated the intonation value of each bank risk factor by counting the number of positive and negative words in the L&M dictionary, which is specially used in the field of financial accounting. Then, an emotion recognition method based on thesaurus and grammar rules – Vader emotion score method is used to analyze the text's emotions. Then, to obtain the similarity between the text information disclosed by bank managers, financial analysts, and credit raters, an emotion vector is used to measure the text emotion similarity. In the empirical analysis, a total of 610 reports of U.S. banks from three parties over the period 2006-2023 are collected. The experimental results indicate that: First, compared with analyst reports and credit rating reports, bank annual reports tend to use a more positive tone when disclosing bank risks, showing a more optimistic mood. Second, the emotional attitude of analyst reports and credit rating reports is more consistent and similar. Third, the average level of emotional similarity among the three is high, but there are often large fluctuations and differences in the years of financial environment turbulence.