Work

Measuring value-based management using natural language processing

Year: 2025

Type: article

Abstract: We propose an alternative approach to quantifying a firm’s value-based management (VBM) sophistication. The approach uses natural language processing (NLP) and builds on a newly developed, customised dictionary. We describe the development of this dictionary and validate the resulting measure for a large sample of European listed firms (STOXX Europe 600 Index) using tests of internal consistency, construct validity, and relevant robustness checks. In doing so, we present a novel application of NLP in management accounting. We also contribute a customised, open-source dictionary for the measurement of VBM sophistication thereby creating opportunities for future research.

Source: Management Accounting Research

DOI: 10.1016/j.mar.2025.100946

Authors: Janice Wobst, Philipp Röttger, Rainer Lueg

Institutions: Leuphana University of Lüneburg, University of Southern Denmark, Europa-Universität Flensburg

Language: English

Topic: Financial Reporting and Valuation Research

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,690

OpenAlex ID: W4415322000

FWCI: 0.895

Cites: 115

Cited by: 1

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