TY - JOUR

T1 - Measuring value-based management using natural language processing

AU - Wobst, Janice

AU - Röttger, Philipp

AU - Lueg, Rainer

N1 - Publisher Copyright: © 2025 The Authors.

PY - 2025/12

Y1 - 2025/12

N2 - We propose an alternative approach to quantifying a firm’s value-based management (VBM) sophistication. The approach uses natural language processing (NLP) and builds on a newly developed, customised dictionary. We describe the development of this dictionary and validate the resulting measure for a large sample of European listed firms (STOXX Europe 600 Index) using tests of internal consistency, construct validity, and relevant robustness checks. In doing so, we present a novel application of NLP in management accounting. We also contribute a customised, open-source dictionary for the measurement of VBM sophistication thereby creating opportunities for future research.

AB - We propose an alternative approach to quantifying a firm’s value-based management (VBM) sophistication. The approach uses natural language processing (NLP) and builds on a newly developed, customised dictionary. We describe the development of this dictionary and validate the resulting measure for a large sample of European listed firms (STOXX Europe 600 Index) using tests of internal consistency, construct validity, and relevant robustness checks. In doing so, we present a novel application of NLP in management accounting. We also contribute a customised, open-source dictionary for the measurement of VBM sophistication thereby creating opportunities for future research.

KW - Natural language processing

KW - Textual analysis

KW - Validity

KW - Value-based management

KW - Management studies

UR - http://www.scopus.com/inward/record.url?scp=105020593560&partnerID=8YFLogxK

U2 - 10.1016/j.mar.2025.100946

DO - 10.1016/j.mar.2025.100946

M3 - Journal articles

AN - SCOPUS:105020593560

VL - 67

JO - Management Accounting Research

JF - Management Accounting Research

SN - 1044-5005

M1 - 100946

ER -