Carbon emissions significantly contribute to climate change, and carbon credits have emerged as a key tool for mitigating environmental damage and helping organizations manage their carbon footprint. Despite their growing importance across sectors, fully leveraging carbon credits remains challenging. This study explores engineering practices and fintech solutions to enhance carbon emission management. We first review the negative impacts of carbon emission non-disclosure, revealing its adverse effects on financial stability and market value. Organizations are encouraged to actively manage emissions and disclose relevant data to mitigate risks. Next, we analyze factors influencing carbon prices and review advanced prediction algorithms that optimize carbon credit purchasing strategies, reducing costs and improving efficiency. Additionally, we examine corporate carbon emission prediction models, which offer accurate performance assessments and aid in planning future carbon credit needs. By integrating carbon price and emission predictions, we propose research directions, including corporate carbon management cost forecasting. This study provides a foundation for future quantitative research on the financial and market impacts of carbon management practices and is the first systematic review focusing on computing solutions and engineering practices for carbon credits.

This paper explores the use of Large Language Models (LLMs) in the generation and evaluation of analytical reports derived from Earnings Calls (ECs). Addressing a current gap in research, we explore the generation of analytical reports with LLMs in a multi-agent framework, designing specialized agents that introduce diverse viewpoints and desirable topics of analysis into the report generation process. Through multiple analyses, we examine the alignment between generated and human-written reports and the impact of both individual and collective agents. Our findings suggest that the introduction of additional agents results in more insightful reports, although reports generated by human experts remain preferred in the majority of cases. Finally, we address the challenging issue of report evaluation, we examine the limitations and strengths of LLMs in assessing the quality of generated reports in different settings, revealing a significant correlation with human experts across multiple dimensions.

This study investigates the effectiveness of Large Language Models (LLMs) in interpreting existing literature through a systematic review of the relationship between Environmental, Social, and Governance (ESG) factors and financial performance. The primary objective is to assess how LLMs can replicate a systematic review on a corpus of ESG-focused papers. We compiled and hand-coded a database of 88 relevant papers published from March 2020 to May 2024. Additionally, we used a set of 238 papers from a previous systematic review of ESG literature from January 2015 to February 2020. We evaluated two current state-of-the-art LLMs, Meta AI's Llama 3 8B and OpenAI's GPT-4o, on the accuracy of their interpretations relative to human-made classifications on both sets of papers. We then compared these results to a "Custom GPT" and a fine-tuned GPT-4o Mini model using the corpus of 238 papers as training data. The fine-tuned GPT-4o Mini model outperformed the base LLMs by 28.3% on average in overall accuracy on prompt 1. At the same time, the "Custom GPT" showed a 3.0% and 15.7% improvement on average in overall accuracy on prompts 2 and 3, respectively. Our findings reveal promising results for investors and agencies to leverage LLMs to summarize complex evidence related to ESG investing, thereby enabling quicker decision-making and a more efficient market.

The new chief, Tang Yu, was responsible for all of the typical duties of a company figurehead: reviewing high-level analytics, making leadership decisions, assessing risks, and fostering an efficient workplace. She worked 24/7, didn't sleep, and was compensated $0 per year. But there was a catch: Yu wasn't a human. She was a virtual robot powered by artificial intelligence. So far, having an AI CEO hasn't had any catastrophic consequences for NetDragon Websoft.

The objective of this paper is to explore how financial big data and machine learning methods can be applied to model and understand financial products. We focus on residential mortgage backed securities, resMBS, which were at the heart of the 2008 US financial crisis. These securities are contained within a prospectus and have a complex waterfall payoff structure. Multiple financial institutions form a supply chain to create prospectuses. To model this supply chain, we use unsupervised probabilistic methods, particularly dynamic topics models (DTM), to extract a set of features (topics) reflecting community formation and temporal evolution along the chain. We then provide insight into the performance of the resMBS securities and the impact of the supply chain through a series of increasingly comprehensive models. First, models at the security level directly identify salient features of resMBS securities that impact their performance. We then extend the model to include prospectus level features and demonstrate that the composition of the prospectus is significant. Our model also shows that communities along the supply chain that are associated with the generation of the prospectuses and securities have an impact on performance. We are the first to show that toxic communities that are closely linked to financial institutions that played a key role in the subprime crisis can increase the risk of failure of resMBS securities.

Specialty auto lenders are unheralded champions of the economy -- they make auto loans available to people with below average credit who would otherwise be unable to buy a car. These cars help people get to work, travel and elevate themselves in life, driving short-term and long-term economic benefits. Specialty auto lenders face heavy regulatory scrutiny, significant capital requirements, high business cyclicality and difficult relationships with the media, which is often quick to label these businesses as predatory. The industry's challenges have been frequently highlighted in news coverage, including articles from Bloomberg, Business Insider and the Wall Street Journal. Despite the challenges, specialty auto lenders have an imperative to approve as many creditworthy applicants as possible.

As AI adoption brings out changes in the workplace, workers are challenged to obtain needed AI skills and business leaders are working to adapt. And as the COVID-19 pandemic has led to a shift to online learning, companies such as Udacity--who have been in that business for years--are in a good position to help. Business leaders may be caught between competing objectives of continuing to deliver strong financial performance while making investments in hiring, workforce training and new technologies that support growth, suggested the author of a recent piece in Harvard Business Review. A team at the MIT-IBM Watson AI Lab has been studying how work is being changed by AI. "By examining these findings, we can create a roadmap for leaders intent on adapting their workforce and reallocating capital, while also delivering profitability," stated author Martin Fleming, a VP and Chief Economist at IBM. He made three suggestions for reskilling the workforce to better prepare for AI.

We designed a machine learning algorithm that identifies patterns between ESG profiles and financial performances for companies in a large investment universe. The algorithm consists of regularly updated sets of rules that map regions into the high-dimensional space of ESG features to excess return predictions. The final aggregated predictions are transformed into scores which allow us to design simple strategies that screen the investment universe for stocks with positive scores. By linking the ESG features with financial performances in a non-linear way, our strategy based upon our machine learning algorithm turns out to be an efficient stock picking tool, which outperforms classic strategies that screen stocks according to their ESG ratings, as the popular best-in-class approach. Our paper brings new ideas in the growing field of financial literature that investigates the links between ESG behavior and the economy. We show indeed that there is clearly some form of alpha in the ESG profile of a company, but that this alpha can be accessed only with powerful, non-linear techniques such as machine learning.

ASC 280-10 defines operating segments as components of a company about which separate financial information is available that is evaluated regularly by the chief decision maker in deciding how to allocate resources and in assessing performance. The Company has two segments: App development and Training. This financial information is consistent with the information presented in the accompanying statements of operations. The Company operates in one reportable segment, the education market. ASC 280-10 defines operating segments as components of a company about which separate financial information is available that is evaluated regularly by the chief decision maker in deciding how to allocate resources and in assessing performance.