Finding Stakeholder-Material Information from 10-K Reports using Fine-Tuned BERT and LSTM Models

All public companies are required by federal securities law to disclose their business and financial activities in their annual 10-K reports. Each report typically spans hundreds of pages, making it difficult for human readers to identify and extract the material information efficiently. To solve the problem, I have fine-tuned BERT models and RNN models with LSTM layers to identify stakeholder-material information, defined as statements that carry information about a company's influence on its stakeholders, including customers, employees, investors, and the community and natural environment. The existing practice uses keyword search to identify such information, which is my baseline model. Using business expert-labeled training data of nearly 6,000 sentences from 62 10-K reports published in 2022, the best model has achieved an accuracy of 0.904 and an F1 score of 0.899 in test data, significantly above the baseline model's 0.781 and 0.749 respectively. Furthermore, the same work was replicated on more granular taxonomies, based on which four distinct groups of stakeholders (i.e., customers, investors, employees, and the community and natural environment) are tested separately. Similarly, fined-tuned BERT models outperformed LSTM and the baseline. The implications for industry application and ideas for future extensions are discussed

China’s Regulatory Framework for Outward Foreign Direct Investment

China has become the world’s third largest outward investor, behind the United States and Japan. A growing body of literature suggests that China’s regulatory framework for outward foreign direct investment (OFDI) is a determinant of the country’s rising OFDI. This paper presents a holistic review of that framework, including some possibilities for its improvement. Overall, China’s framework serves two objectives: to help Chinese firms become more competitive internationally and to assist the country in its development effort. In pursuing these objectives, the regulatory framework has moved from restricting, to facilitating, to supporting, to encouraging OFDI; but there are still strong elements of administrative control that make it cumbersome. State-owned enterprises (SOEs) seem to benefit particularly from the current framework when internationalizing through FDI

Inward FDI in Taiwan and its policy context

Taiwan has long maintained an explicit policy of attracting inward foreign direct investment (IFDI) as part of its growth strategy, although inflows have been subject to various restrictions. The primary objective of Taiwan's stance toward FDI was initially to attract export-oriented investment based upon the competitiveness of its highly educated and productive labor force. More recently, this objective has been modified to focus on attracting FDI into increasingly technology-intensive areas and to encourage or promote domestic technological spillovers. In recent years, although Taiwan's IFDI stock has more than tripled, from US$20 billion in 2000 to US$ 64 billion in 2010, it remains a relatively small recipient compared with its neighboring economies in the Asia-Pacific region. Annual IFDI flows to Taiwan have been in single-digit US$billion during 2000-2010, with a peak of US$ 7 billion in 2007 followed by a steady decline during 2008-2010. In 2010, Taiwan received inward FDI of US$ 2 billion only. It is, however, generally seen that the release of prohibition against mainland China investors on June 30, 2009, and the newly signed landmark cross-strait Economic Cooperation Framework Agreement (ECFA) on June 30, 2010 will reinforce Taiwan's robust investment climate and stimulate IFDI

Inward and Outward FDI Country Profiles, Second Edition

This second edition contains a series of 77 standardized country profiles dealing with the inward and outward foreign direct investment (FDI) performance of 40 economies. The profiles have been peer-reviewed by a global network of experts. The publication is intended to contribute to the analysis of trends in foreign direct investment and policy issues related to them. More specifically, the individual profiles discuss FDI trends and developments (country-level developments, the corporate players); effects of the recent global crises; and the policy scene. Each profile contains a standard set of tables, including on FDI stocks and flows, sectoral and geographical FDI distributions, the largest M&As and greenfield investments, the principal foreign affiliates (for inward FDI), and the principal multinational enterprises (for outward FDI). The standardized template used to produce the profiles allows cross-country comparisons. The volume is meant to be a reference tool for anyone interested in foreign direct investment

Institution, internationalization and innovation: three papers on penetration of emerging-market multinational enterprises into developed markets

Three papers are presented on the emerging phenomenon of penetration by emerging-market multinational enterprises (EMNEs) into developed markets (DMs) through outward foreign direct investment (OFDI). Paper 1 examines the roles played by home market-supporting institutional development, at sub-national levels, in OFDI decisions from emerging markets (EMs) into DMs. Paper 2 focuses on the next stage of EMNEs’ investment in DMs – going in, or choosing a mode of entry. It extends the first paper by investigating the effects of home market-supporting institutional development, at the sub-national level, on a local EM firm’s choice of ownership (partial vs. full) when entering into a DM. In Papers 1 and 2, I argue that the home institutional effect, measured at the sub-national level, is twofold. First, there is a positive direct effect on both the propensity to enter DMs and the propensity to choose full-ownership entry. Second, there is a positive indirect effect on both factors through the mediation of market-related firm capabilities such as technological capability. Papers 1 and 2 are among the first attempts to investigate the roles of home institutions, particularly at sub-national levels, in global strategy and to explore the mediation roles of firm capabilities. Paper 3 focuses on a later stage for those EMNEs that are sourcing knowledge in DMs – going back. It examines whether and to what extent EMNEs use OFDI in a DM to capture knowledge spillovers so as to improve their technological capabilities at home, an effect termed “reverse spillover.” This is one of the first studies to examine spillover effects in this direction (from foreign subsidiaries to home parent firms), and among the first EMNE studies to examine after-entry issues. In all three papers, I find supportive empirical evidence using regression methods. Overall, my thesis provides new insights: EMNEs are home-related, and this relationship is bidirectional, in that their international activities are shaped by their home institutional environment while their overseas activities can affect their technological capabilities at home

Supplement_R4 – Supplemental material for A Principals-Principals Perspective of Hybrid Leviathans: Cross-Border Acquisitions by State-Owned MNEs

<p>Supplemental material, Supplement_R4 for A Principals-Principals Perspective of Hybrid Leviathans: Cross-Border Acquisitions by State-Owned MNEs by Victor Zitian Chen, Aldo Musacchio and Sali Li in Journal of Management</p

JOM764293_SUPPL_refs – Supplemental material for A Principals-Principals Perspective of Hybrid Leviathans: Cross-Border Acquisitions by State-Owned MNEs

<p>Supplemental material, JOM764293_SUPPL_refs for A Principals-Principals Perspective of Hybrid Leviathans: Cross-Border Acquisitions by State-Owned MNEs by Victor Zitian Chen, Aldo Musacchio and Sali Li in Journal of Management</p

JOM764293_Online_supplement_CLN – Supplemental material for A Principals-Principals Perspective of Hybrid Leviathans: Cross-Border Acquisitions by State-Owned MNEs

<p>Supplemental material, JOM764293_Online_supplement_CLN for A Principals-Principals Perspective of Hybrid Leviathans: Cross-Border Acquisitions by State-Owned MNEs by Victor Zitian Chen, Aldo Musacchio and Sali Li in Journal of Management</p