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Finance and Credit
 

Machining technologies to compute the psychological-financial index

Vol. 30, Iss. 4, APRIL 2024

Received: 27 November 2023

Received in revised form: 11 December 2023

Accepted: 25 December 2023

Available online: 26 April 2024

Subject Heading: THEORY OF FINANCE

JEL Classification: G11, G12, G13, G14, G17

Pages: 788–813

https://doi.org/10.24891/fc.30.4.788

Semen Yu. BOGATYREV International Banking Institute named after Anatoliy Sobchak, St. Petersburg, Russian Federation
sbogatyrev@ibispb.ru

https://orcid.org/0000-0002-6080-5869

Irina A. NIKONOVA International Banking Institute named after Anatoliy Sobchak, St. Petersburg, Russian Federation
irina_nikonova@mail.ru

https://orcid.org/0000-0002-6911-9435

Aleksandr A. POMULEV inancial University under Government of Russian Federation, Moscow, Russian Federation
sasha-pomulev@yandex.ru

https://orcid.org/0000-0002-3189-1534

Subject. This article deals with the issues of measuring the emotions of financial decision-makers based on machine learning technologies in finance.
Objectives. The article aims to develop a methodology for measuring emotions in the financial sector, algorithms and software based on artificial intelligence for its implementation in finance.
Methods. For the study, we used the methods for marking up text data, index method, machine learning methods, computer technologies for natural language processing, methods for assessing emotions with their own rating scale, induction and deduction, and statistical methods for processing observation results.
Results. The article reveals the content of methods for comprehensive measurement of the emotions of financial decision-makers. Software tools were created to implement machine learning technologies when computing an emotion measurement index.
Conclusions and Relevance. A psycho-financial index based on automatic calculation using new machine learning technologies provides fundamental analysts of financial markets with an analytical tool that brings the forecast result closer to real conditions, when the emerging combinations of traditional and psychological indicators in the markets provide a new interpretation of current events. This improves the quality of analytical work and improves its results. The result can be used in the work of a fundamental analyst of financial markets. The use of new indicators complements and expands the classic analytical tools and improves the quality of market forecasts.

Keywords: behavioral finance, machine learning, financial markets, irrational investor behavior

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