@article{ART003363445},
author={SeonahLee and LIM, BYUNG HWA},
title={Does Language Matter in LLM-Based Business Networks? Evidence from Korean Corporate Disclosures},
journal={Asset Management Review},
issn={2288-6672},
year={2026},
volume={14},
number={1},
pages={17-44}
TY - JOUR
AU - SeonahLee
AU - LIM, BYUNG HWA
TI - Does Language Matter in LLM-Based Business Networks? Evidence from Korean Corporate Disclosures
JO - Asset Management Review
PY - 2026
VL - 14
IS - 1
PB - Institute of Management Research, SungKyunKwan University
SP - 17
EP - 44
SN - 2288-6672
AB - This study constructs large language model (LLM)-based dynamic business networks for KOSPI-listed firms and examines whether the output language of LLM-generated business descriptions affects network informativeness. Using annual reports from 2010 to 2024, we extract the Business Overview and MD&A sections and generate standardized business descriptions in both Korean and English from the same underlying disclosures. To reduce look-ahead bias, firm and product identifiers are masked before LLM generation. We then embed the generated descriptions with multiple language and finance-specific models and construct annual peer networks based on cosine similarity. The results show that the proposed networks identify firm-level economic peers not fully captured by the Korean Standard Industrial Classification (KSIC). More importantly, Korean summaries and English summaries generated from Korean disclosures produce different similarity structures and lead-lag return signals. Asset-pricing tests indicate that network-based peer-return factors generate significant alphas beyond standard risk factors and a KSIC-based benchmark. LLM-based English business descriptions tend to deliver more stable and broadly significant lead-lag performance in several specifications, while Korean descriptions also provide meaningful signals in selected cases. These findings suggest that output-language choice is not a neutral preprocessing step, but a substantive modeling decision in LLM-based financial text analysis.
KW - Industry classification;business network;large language model;text analysis;and precedence effect
DO -
UR -
ER -
SeonahLee and LIM, BYUNG HWA. (2026). Does Language Matter in LLM-Based Business Networks? Evidence from Korean Corporate Disclosures. Asset Management Review, 14(1), 17-44.
SeonahLee and LIM, BYUNG HWA. 2026, "Does Language Matter in LLM-Based Business Networks? Evidence from Korean Corporate Disclosures", Asset Management Review, vol.14, no.1 pp.17-44.
SeonahLee, LIM, BYUNG HWA "Does Language Matter in LLM-Based Business Networks? Evidence from Korean Corporate Disclosures" Asset Management Review 14.1 pp.17-44 (2026) : 17.
SeonahLee, LIM, BYUNG HWA. Does Language Matter in LLM-Based Business Networks? Evidence from Korean Corporate Disclosures. 2026; 14(1), 17-44.
SeonahLee and LIM, BYUNG HWA. "Does Language Matter in LLM-Based Business Networks? Evidence from Korean Corporate Disclosures" Asset Management Review 14, no.1 (2026) : 17-44.
SeonahLee; LIM, BYUNG HWA. Does Language Matter in LLM-Based Business Networks? Evidence from Korean Corporate Disclosures. Asset Management Review, 14(1), 17-44.
SeonahLee; LIM, BYUNG HWA. Does Language Matter in LLM-Based Business Networks? Evidence from Korean Corporate Disclosures. Asset Management Review. 2026; 14(1) 17-44.
SeonahLee, LIM, BYUNG HWA. Does Language Matter in LLM-Based Business Networks? Evidence from Korean Corporate Disclosures. 2026; 14(1), 17-44.
SeonahLee and LIM, BYUNG HWA. "Does Language Matter in LLM-Based Business Networks? Evidence from Korean Corporate Disclosures" Asset Management Review 14, no.1 (2026) : 17-44.
