Goal-Directed Extractive Summarization of Financial Reports

Abstract

Financial reports filed by various companies discuss compliance, risks, and future plans, such as goals and new projects, which directly impact their stock price. Quick consumption of such information is critical for financial analysts and investors to make stock buy/sell decisions and for equity evaluations. Hence, we study the problem of extractive summarization of 10-K reports. Recently, Transformer-based summarization models have become very popular. However, lack of in-domain labeled summarization data is a major roadblock to train such finance-specific summarization models. We also show that zero-shot inference on such pretrained models is not as effective either. In this paper, we address this challenge by modeling 10-K report summarization using a goal-directed setting where we leverage summaries with labeled goal-related data for the stock buy/sell classification goal. Further, we provide improvements by considering a multi-task learning method with an industry classification auxiliary task. Intrinsic evaluation as well as extrinsic evaluation for the stock buy/sell classification and portfolio construction tasks shows that our proposed method significantly outperforms strong baselines.