Work

Can ChatGPT reduce human financial analysts’ optimistic biases?

Year: 2023

Type: article

Abstract: This paper examines the potential of ChatGPT, a large language model, as a financial advisor for listed firm performance forecasts.We focus on the constituent stocks of the China Securities Index 300 and compare ChatGPT's forecasts for major financial performance measures with human analysts' forecasts and the realised values.Our findings suggest that ChatGPT can correct the optimistic biases of human analysts.This study contributes to the literature by exploring the potential of ChatGPT as a financial advisor and demonstrating its role in reducing human biases in financial decision-making.

Source: Economic and Political Studies

DOI: 10.1080/20954816.2023.2276965

Authors: Xiaoyang Li, Haoming Feng, Hailong Yang, Jiyuan Huang

Institutions: Hong Kong Polytechnic University, Renmin University of China, University of Zurich, Swiss Finance Institute

Language: English

Topic: Forecasting Techniques and Applications

Subfield: Management Science and Operations Research

Field: Decision Sciences

Domain: Social Sciences

Open Access status: hybrid

Funders: Schweizerischer Nationalfonds zur Förderung der Wissenschaftlichen Forschung, National Social Science Fund of China

Award: Trading and Financing during Market Stress