Using nearly 8000 10-K documents published in 2016 and 2017, we generate contextual vectors through artificial neural networks and test whether the language of 10-K documents, without any detailed numeric indicators of financial performance, correlate with earnings per share and other financials of the S&P 500. We find significant correlation between earnings per share and contextual vectors, concluding that semantic analysis is a valuable tool that has great potential in financial analysis.
Using nearly 8000 10-K documents published in 2016 and 2017, we generate contextual vectors through artificial neural networks and test whether the language of 10-K documents, without any detailed numeric indicators of financial performance, correlate with earnings per share and other financials of the S&P 500. We find significant correlation between earnings per share and contextual vectors, concluding that semantic analysis is a valuable tool that has great potential in financial analysis.