tag:blogger.com,1999:blog-943061409344261913.post3007570345886754790..comments2016-05-01T23:46:42.255-04:00Comments on IS 251 @ Loyola University in Maryland: How a Software Can Predict Financial Performance by Detecting a CEO's EmotionsUnknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-943061409344261913.post-78752797524870747532016-03-29T11:54:20.846-04:002016-03-29T11:54:20.846-04:00I’d be interested in seeing this technology utiliz...I’d be interested in seeing this technology utilized for how truthful executives are being when their activity is under question. For example, had this technology been available before the creation of the Sarbanes-Oxley Act amidst all of the creative accounting scandals at companies such as Enron, World Com, AIG, etc. maybe there would have been more convictions instead of everyone just playing dumb and shifting the blame onto someone else. As far as predicting market prices, I think the technology could be reading someone’s mood and facial expressions based on how good of a night’s sleep they got the previous night rather than deciphering some veil of impending success or failure. There is already enough pressure on management in companies to outperform previous quarters, which is what contributed to many of the afore mentioned scandals. Imagine a world where part of your job description is giving off the right facial expressions while being subjected to facial reading technology or else your company would be devalued? It seems a little too invasive to me, but I think it could be useful in a courtroom setting where the truth is needed and can easily be misconstrued by executives playing the “I didn’t know what was happening” card.Anonymoushttps://www.blogger.com/profile/03145783541726616570noreply@blogger.comtag:blogger.com,1999:blog-943061409344261913.post-53449317124780517432016-03-09T22:59:31.279-05:002016-03-09T22:59:31.279-05:00As a finance major I found this post particularly ...As a finance major I found this post particularly interesting. It would seem an attractive idea to try to predict stock value by facial analytics of CEOs, but there are many notable potential downfalls. The first and most important was mentioned in the original post. If this technology does become widespread, CEOs will find away to either trick the technology into thinking their companies are doing better or learn how to mask emotions. I do not think it would be wise to plan on using this tactic in the long term. Also, I question the accuracy of the initial survey. Fear leading to a 9.3% boost in overall profits seems very counterintuitive. Wouldn’t a CEO whose company is on the verge of bankruptcy be showing fear? Different people demonstrate emotion in a variety of ways so I wonder if the sample size of fortune 500 CEOs is large enough to really be conclusive. Also, emotions derived from business performance likely very from culture to culture. It could be that this works for certain American CEO’s, but I doubt it can be applied universally. Another difficulty I find is getting the facial data for analytics. How do they know the fear, anxiety, or whatever emotion comes from business performance? There are many other confounding variables such as family or health issues that could throw off the data. Would they require a new picture to analyze of the CEO on a daily basis? That could be difficult to get, specially a picture where there emotion relates to the company’s performance. It is solid idea to attempt to predict stock value from CEO emotion, but until there is more concrete evidence, at the minimum dollar amounts of how much they profited, I would refrain from using this technology. Anonymoushttps://www.blogger.com/profile/04853041531433791483noreply@blogger.com