Text readability and fraud detection

Othman, Intan Waheedah; Hasan, Hazlina; Tapsir, Roszana; Rahman, Nurur; Tarmuji, Indarawati; Majdi, Suria; Masuri, Seri Ayu; Omar, Normah

doi:10.1109/isbeia.2012.6422890

Cited by 10 publications

(8 citation statements)

References 36 publications

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“…In finance, manual text analysis established that annual report readability is a direct predictor of firm performance, with poor readability associated with poor performance and vice versa (Soper & Dolphin, ; Still, ; Dolphin & Wagley, ; Healy, ; Holley & Early, ; Lebar, ; Courtis, , , , ; Gibson & Schroeder, ; Schroeder & Gibson, ; Baker & Kare, ; Clatworthy & Jones, , , ; Lehavy et al, ; Smith & Smith, ; Smith & Taffler, , ). Studies employing basic text mining confirmed this phenomenon (Jones, ; Nelson & Pritchard, ; Lee, ; Loughran and McDonald, 2009, 2010, 2014; Miller, ; De Franco et al, ; Othman et al, ).…”

Section: Predictionmentioning

confidence: 89%

“…Accounting and audit literature highlighted significant associations between financial‐disclosure readability and current financial performance (Courtis, ; Henry, ), future financial performance (Butler & Keselj, ), earnings quality and persistence (Li, ; Lee, ) and fraud potential (Moffitt & Burns, ; Goel et al, ; Humpherys et al, ; Othman et al, ).…”

Section: Predictionmentioning

confidence: 99%

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Natural Language Processing in Accounting, Auditing and Finance: A Synthesis of the Literature with a Roadmap for Future Research

Fisher

Garnsey

Hughes

2016

Intell. Sys. Acc. Fin. Mgmt.

153

112

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Natural language processing (NLP) is a part of the artificial intelligence domain focused on communication between humans and computers. NLP attempts to address the inherent problem that while human communications are often ambiguous and imprecise, computers require unambiguous and precise messages to enable understanding. The accounting, auditing and finance domains frequently put forth textual documents intended to communicate a wide variety of messages, including, but not limited to, corporate financial performance, management's assessment of current and future firm performance, analysts' assessments of firm performance, domain standards and regulations as well as evidence of compliance with relevant standards and regulations. NLP applications have been used to mine these documents to obtain insights, make inferences and to create additional methodologies and artefacts to advance knowledge in accounting, auditing and finance. This paper synthesizes the extant literature in NLP in accounting, auditing and finance to establish the state of current knowledge and to identify paths for future research.of achieving human-like language processing for a range of tasks or applications' (Liddy, 2001). This implies, as demonstrated throughout this paper, that 'there are multiple methods or techniques from which to choose to accomplish a particular type of language analysis' (Liddy, 2001). We reference a variety of analytical methods that incorporate NLP data, at various 'levels of linguistic analysis' (Liddy, 2001). However, since 'NLP is considered a discipline within Artificial Intelligence (AI)' we focus most heavily on the AI-related applications of NLP (Liddy, 2001). Despite the plethora of analytical methods that are associated with and use data produced by NLP, it comprises a unique set of 'computational techniques' that should not be confused or conflated with the many analytical tools referenced in the text that follows.Fifty years ago Goldberg (1965) stated: 'it is scarcely an exaggeration to say that the problem of communication is the axial problem in accounting'. Accounting practice is replete with written documents intended to communicate such messages as, but not limited to: current accounting standards, past and expected future corporate performance (along multiple dimensions), policies and practices embodied by financial statements and the results of financial statement audits. The growth in digital and social media usage by businesses has further increased the volume of unstructured text documents. Since the dissemination of these documents and messages is now largely automated by and through computers, we believe that NLP research and applications have considerable potential to enhance communication in the areas of accounting, auditing and finance. Our paper is motivated by the desire to determine the state of the extant literature in NLP in accounting, auditing and finance so as to inform and guide future research efforts. ObjectivesThis paper examines the NLP literature in accounting, auditing and fi...

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Section: Predictionmentioning

confidence: 89%

Section: Predictionmentioning

confidence: 99%

Natural Language Processing in Accounting, Auditing and Finance: A Synthesis of the Literature with a Roadmap for Future Research

Fisher

Garnsey

Hughes

2016

Intell. Sys. Acc. Fin. Mgmt.

153

112

View full text Add to dashboard Cite

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“…O FRESé uma fórmula desenvolvida por Rudolph Flesch em 1948 utilizada para calcular o grau de legibilidade de um texto [Flesch 1948]. O valor de FRESé obtido por meio da seguinte fórmula [Othman et al 2012]:…”

Section: Extração De Características Textuaisunclassified

Análise comparativa das principais plataformas de reclamações online: implicações para análise de mídia social em negócios

Sousa¹,

Guimarães²,

Jacob³

et al. 2020

Anais Do Brazilian Workshop on Social Network Analysis and Mining (BraSNAM 2020)

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Novas formas de relacionamento entre empresas e clientes foram introduzidas através do uso massivo de mídias sociais, e têm transformado a forma com a qual clientes tomam decisões de compras. Esta nova realidade explicitou a importância da análise do conteúdo relacionado a marcas e produtos publicados por consumidores em plataformas de mídias sociais. Nesse sentido, este artigo apresenta uma análise comparativa das duas maiores plataformas de reclamação online no Brasil, o ReclameAqui e o Consumidor.gov. Nas análises são utilizados os conteúdos provenientes de mineração de dados textuais de reclamações de cinco grandes empresas do setor de ecommerce brasileiro, com o objetivo de fornecer uma base para compreender os desafios e oportunidades nas análises destas mídias sociais em negócios. Os resultados mostram que a forma de atuação das empresas nessas plataformas deve ser especifica para cada plataforma, pois existem particularidades, tais como grupo de consumidores, conteúdo e principais tipos de problemas.

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“…According to the obfuscation theory, the management of a company tries to hide bad news by making the financial reports more difficult to read (Li, 2008;Othman et al, 2012). The assumption is that longer annual reports are less readable (Li, 2008;Miller, 2010).…”

Section: Readability Scoresmentioning

confidence: 99%

“…This result corresponds to a result obtained with the complexity features as described in Section 5.2.2. In the pilot study of Othman et al (2012), the FRE score showed that, on average, the chairman's statement of Malaysian companies is more complex for fraudulent companies. (Gunning, 1969;Mc Laughlin, 1969).…”

Text readability and fraud detection

Cited by 10 publications

References 36 publications

Natural Language Processing in Accounting, Auditing and Finance: A Synthesis of the Literature with a Roadmap for Future Research

Natural Language Processing in Accounting, Auditing and Finance: A Synthesis of the Literature with a Roadmap for Future Research

Análise comparativa das principais plataformas de reclamações online: implicações para análise de mídia social em negócios

Text mining to detect indications of fraud in annual reports worldwide

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