Crypto Accounting Market Dynamics: Advanced Econometric Analysis of Earnings Impact with BERT-Powered GenAI Models

Authors

Karina Kasztelnik, Tenesse State UniversityFollow
Steven Campbell, Tennessee State UniversityFollow
Eva K. Jermakowicz, Tennessee State UniversityFollow

Document Type

Article

Abstract

This study is, the authors believe, a groundbreaking investigation into the impact of cryptocurrency news on the earnings of publicly traded companies. Using advanced Generative AI (GenAI) models and the BERT framework for sentiment analysis, we integrated comprehensive data from the Financial Modeling Prep API. This enabled us to employ a rigorous event study methodology and advanced machine learning algorithms. Valuable insights were derived from the BERT model, shedding light on the reasons behind abnormal returns and facilitating a thorough analysis of material and immaterial impacts. The study’s findings highlight the significant influence of both positive and negative cryptocurrency news on cumulative abnormal returns (CAR), particularly among firms deeply involved in crypto activities. Notably, deliberate news, including official announcements, had a more pronounced impact than unintentional ones on market reactions. This innovative approach provides actionable insights into financial services, investment management, and corporate communication, offering a framework for improving predictive models, investment decisions, and risk management strategies.

Recommended Citation

Kasztelnik, Karina; Campbell, Steven; and Jermakowicz, Eva K. (2025) "Crypto Accounting Market Dynamics: Advanced Econometric Analysis of Earnings Impact with BERT-Powered GenAI Models," Journal of Global Awareness: Vol. 6: No. 1, Article 3.
Available at: https://scholar.stjohns.edu/jga/vol6/iss1/3