Linking Industry Sectors and Financial Statements: A Hybrid Approach for Company Classification
The identification of the financial characteristics of industry sectors has a large importance in accounting audit, allowing auditors to prioritize the most important area during audit. Existing company classification standards such as the Standard Industry Classification (SIC) code allow to map a company to a category based on its activity and products. In this paper, we explore the potential of machine learning algorithms and language models to analyze the relationship between those categories and companies' financial statements. We propose a supervised company classification methodology and analyze several types of representations for financial statements. Existing works address this task using solely numerical information in financial records. Our findings show that beyond numbers, textual information occurring in financial records can be leveraged by language models to match the performance of dedicated decision tree-based classifiers, while providing better explainability and more generic accounting representations. We think this work can serve as a preliminary work towards semi-automatic auditing.
Authors
- Gaël Guibon (ORCID: https://orcid.org/0000-0003-2420-9311)
- Christophe Cerisara
- Guy Stephane Waffo Dzuyo
- Luis Belmar-Letelier
Institutions
- Centre National de la Recherche Scientifique (FR)
- Sorbonne Université (FR)
- Université Sorbonne Paris Nord (FR)
- Laboratoire Lorrain de Recherche en Informatique et ses Applications (FR)
- Laboratoire de physique des lasers (FR)
- Laboratoire d'Informatique de Paris-Nord (FR)
- Université de Lorraine (FR)
Publication Details
- Journal
- Proceedings of the AAAI Conference on Artificial Intelligence
- Published
- 2025-04-11
- DOI
- https://doi.org/10.1609/aaai.v39i16.33806
- Primary Topic
- Big Data and Business Intelligence
- Type
- article
- Field-Weighted Citation Impact
- 0.00
Funders
- Centre National de la Recherche Scientifique