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Textual similarity between firm and government: Measurement and pricing

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  • Liu, Yulin
  • Cao, Zhiling
  • Wen, Fenghua

Abstract

Using the BERT large language model and extensive textual data, this paper measures the alignment between firm achievements and government development goals. We prove that firms aligning closely with national goals are more favorably valued in the capital market. Our results offer valuable insights for policymakers and corporate leaders in strategy optimization within complex macroeconomic environments.

Suggested Citation

  • Liu, Yulin & Cao, Zhiling & Wen, Fenghua, 2024. "Textual similarity between firm and government: Measurement and pricing," Economics Letters, Elsevier, vol. 241(C).
    • Handle: RePEc:eee:ecolet:v:241:y:2024:i:c:s0165176524003070
    DOI: 10.1016/j.econlet.2024.111823
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    References listed on IDEAS

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    1. Qing Li & Hongyu Shan & Yuehua Tang & Vincent Yao, 2024. "Corporate Climate Risk: Measurements and Responses," The Review of Financial Studies, Society for Financial Studies, vol. 37(6), pages 1778-1830.
    2. Apergis, Nicholas, 2024. "Monetary policy shocks and corporate cash holdings: New European evidence," Economics Letters, Elsevier, vol. 237(C).
    3. Lee, Charles M.C. & Zhong, Qinlin, 2022. "Shall we talk? The role of interactive investor platforms in corporate communication," Journal of Accounting and Economics, Elsevier, vol. 74(2).
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