Taking sentiment analysis to the world of fintech, Dr. James Cicon from the University of Central Missouri built a software that can provide financial insights through facial expressions and behavior. After scanning 200 CEOs and ex-Wall Street executives, the software according to Cicon can give clues to an executives state of mind and how he/she will preform. As revolutionary as this may be, sentiment analysis software is not yet 100% accurate. Don't go mimicking your successful bosses facial expressions just yet...
Dr. Cicon pointed to psychological research to explain why investors interpreted negative emotions as a sign of positive movement in share price. “Fear is widely recognized as a powerful motivator. Thus it is not surprising to find that a CEO who appears fearful under interrogation is perceived by the market as a CEO who will work harder to increase firm value,” said the paper, which was co-authored by Steve Ferris of the University of Central Missouri and Ali Akansu and Yanjia Sun of New Jersey Institute of Technology.