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Exploring CEO Messages in Sustainability Management Reports: Applying Sentiment Mining and Sustainability Balanced Scorecard Methods

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  • Hyung Jong Na

    (SKK Business School, Sungkyunkwan University, Seoul 03063, Korea)

  • Kun Chang Lee

    (SKK Business School, Sungkyunkwan University, Seoul 03063, Korea
    Department of Health Sciences & Technology, SAIHST (Samsung Advanced Institute for Health Sciences & Technology), Seoul 06351, Korea)

  • Seung Uk Choi

    (School of Management, Kyung Hee University, Seoul 02447, Korea)

  • Seong Tae Kim

    (School of Management, Kyung Hee University, Seoul 02447, Korea)

Abstract

The purpose of this study is to apply a combination of sentiment mining techniques and a sustainability balanced scorecard to CEO messages in sustainability management reports to predict corporate financial ratios. We classify the contents of CEO messages into the six perspectives suggested by the sustainability balanced scorecard (SBSC). From the sentiment mining results, we first document that positive words dominate CEO messages in sustainability management reports. Moreover, words related to the sustainability perspective do not generally exhibit a significant relationship with financial ratios. This finding indicates that CEOs’ messages in sustainability management reports seemingly fail to properly represent the firms’ current financial status. Therefore, the results indicate that a stronger supervisory standard may be required to induce CEO disclosures that are more responsible for sustainable management reports.

Suggested Citation

  • Hyung Jong Na & Kun Chang Lee & Seung Uk Choi & Seong Tae Kim, 2020. "Exploring CEO Messages in Sustainability Management Reports: Applying Sentiment Mining and Sustainability Balanced Scorecard Methods," Sustainability, MDPI, vol. 12(2), pages 1-21, January.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:2:p:590-:d:308262
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    5. Hyun Jung Kim & Keun Tae Cho, 2022. "Analysis of Changes in Innovative Management of Global Insurers in the Pre- and Post-COVID-19 Eras," Sustainability, MDPI, vol. 14(16), pages 1-21, August.

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