Application of text mining in analysing notes to financial statements: A Hungarian case
Vol. 17, No 3, 2024
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Veronika Fenyves
Faculty of Economics and Business, University of Debrecen, Debrecen, Hungary fenyves.veronika@econ.unideb.hu ORCID 0000-0002-8737-0666 |
Application of text mining in analysing notes to financial statements: A Hungarian case |
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Tibor Tarnóczi
Faculty of Economics and Business, University of Debrecen, Debrecen, Hungary tarnoczi.tibor@econ.unideb.hu ORCID 0000-0002-5655-6871 Ildikó Orbán
Faculty of Economics and Business, University of Debrecen, Debrecen, Hungary orban.ildiko@econ.unideb.hu ORCID 0000-0001-7783-2201 |
Abstract. Company stakeholders must have reliable and accurate information about the companies falling into their sphere of interest. In Hungary, one of the key sources of information for company stakeholders is the financial statements and related explanations, which are included in the notes of the financial statements (notes). This study used text mining to analyse the Hungarian annual financial statements notes for 2017, 2019 and 2021. The selection of the notes was based on the proportions of each sector in the national economy. The research analysed 28,700 company notes annually, totalling 86,100 documents for the three years. The text mining and generation of the Term Frequency Matrix have performed 'quanteda' packages of the R statistical system, which incorporate the results of artificial intelligence research to enhance the efficiency of text mining. Based on the results, the contents of the notes to the financial statements appear to be a rather mixed picture in Hungary. Analysing the term frequency matrix for the 67 most common terms has revealed no significant difference between the years. However, considerable differences have been caused by size categories and sectors. The notes are statistically significant using Jaccard similarity analysis, considering the year, corporate size, and sector. |
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Received: November, 2023 1st Revision: August, 2024 Accepted: September, 2024 |
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DOI: 10.14254/2071-8330.2024/17-3/11
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JEL Classification: M41, M42, C12, C63 |
Keywords: notes to financial statement, text mining, text analysis, Hungary |
