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Sustainability
Article . 2022 . Peer-reviewed
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Sustainability
Article . 2022
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Integrating Text-Mining and Sustainability Balanced Scorecard Methods to Examine the Relationship between CEO Messages of Homepages and Firm Value: Emphasis on Fashion Companies in South Korea

Authors: Hyung Jong Na; So Ra Kim; Hyun Jin Jo;

Integrating Text-Mining and Sustainability Balanced Scorecard Methods to Examine the Relationship between CEO Messages of Homepages and Firm Value: Emphasis on Fashion Companies in South Korea

Abstract

This research examines the association between CEO messages and current and future corporate value on the websites of fashion companies. The research methods of this paper are as follows: First, we extract the fashion firm samples among companies listed in Korea’s KOSPI and KOSDAQ in 2020. Second, CEO messages’ text data on the homepage of the fashion companies are obtained by hand-collecting. The repeated words with high TF-IDF values are selected as keywords using text-mining techniques. Third, the CEO messages of the fashion firms are classified with one of finance, customer, internal management process, learning and growth, and corporate social standpoints by the SBSC framework. This research investigates through regression analysis whether firms that emphasize certain factors affect their future or current corporate value. As an additional test, using social network analysis, CONCOR analysis, and 2SLS analysis, the paper checks the objectivity and robustness of the empirical results. The results of this paper are as follows: The first finding presents that all the standpoints of the CEO messages of fashion firms had no significant association with current company value. These results imply that CEO messages posted on the company homepage are generally expressed from a long-term standpoint, and a long time is needed to realize their visions or goals expressed in the CEO message to actually effect corporate value. The second finding shows that the future firm value can be improved as firms mention more words related to the corporation’s social responsibility among CEO messages of the company homepages disclosed by fashion companies. This result implies that if a fashion firm shows its vision and goals related to corporate social responsibility and makes an effort to achieve them, the company value will be increased in the future. The results of the additional tests support the fact that there is a significant positive association between the mention of social responsibility in the CEO message of the company’s website and future firm value. The contributions of this study are as follows: First, on research topics in the field of accounting, this study utilizes text mining and the SBSC framework and quantified qualitative data to perform empirical analysis. Introducing this new and innovative methodology contributes to the development of convergence research. Second, the results of this study suggest that the contents of the company’s CEO message contain symbolic and implicit important information. In particular, this study proved through empirical analysis that companies’ effort and achievement related to social responsibility help increase corporate value in the long run.

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Keywords

current firm value, CEO messages; homepage; text mining; SBSC framework; current firm value; future firm value; social network analysis; CONCOR analysis, future firm value, Environmental effects of industries and plants, TJ807-830, CEO messages, text mining, TD194-195, Renewable energy sources, Environmental sciences, homepage, SBSC framework, GE1-350

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citations
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
1
Average
Average
Average
gold