Financial literacy of ChatGPT: Evidence through financial news

Ya-Ling Chiu, Xuechen Gao, Hung-Chun Liu and Qiong Zhai

Finance Research Letters, 2025, vol. 78, issue C

Abstract: Our study explores the potential of AI to interpret financial news articles and support the development of effective investment strategies. The well-known AI model, ChatGPT, was employed to analyze a set of financial news articles published in 2022 related to the Taiwan stock market and assign a buying score to each stock mentioned. The daily average buying scores provided by ChatGPT largely reflect the overall stock market movement. Stocks receiving higher buying scores tend to outperform those with lower scores. Portfolios composed of stocks with low buying scores significantly underperform the market, suggesting that negative news have a notable adverse effect on subsequent stock performance.

Keywords: ChatGPT; Investor attention; Abnormal return; Artificial intelligence (search for similar items in EconPapers)
JEL-codes: C14 C22 G14 G15 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:78:y:2025:i:c:s1544612325003514

DOI: 10.1016/j.frl.2025.107088

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