Daily Papers

Existing defenses against hallucination in retrieval-augmented and multi-agent pipelines remain partial: evidence is trusted despite modality disagreement, debate verifies an aggregate report rather than individual claims, and such verification occurs only after drafting, leaving inter-agent errors undetected until the final text. To close this gap, we present CLAIR-Fin, a nine-agent framework that decomposes each question into atomic claims maintained in a typed Financial Claim Ledger. Each claim is resolved through Asymmetric Evidence Authority, which conditions evidence trust on claim type rather than treating all modalities as equally reliable; Chain-of-Custody Verification, which checks grounding at the hand-off between drafting and adversarial review rather than only at the pipeline's exit; an Adaptive Rebuttal Cycle, which routes contested claims through adversarial debate whose depth scales with what that debate finds; and a terminal entailment audit paired with a continuous Hallucination Risk Index that distinguishes claims that passed scrutiny from claims never contested. We evaluate CLAIR-Fin on BB-FinQA-X, a 500-question cross-modal financial evaluation set built from Bangladesh Bank Annual Report material, stratified by query type, format, and difficulty. Relative to a single-pass retrieval-augmented generation baseline, it raises faithfulness (0.780 rightarrow 0.889) while abstaining on 5.4% of questions when evidence is insufficient rather than forcing an unsupported response, and it exceeds stronger retrieval-strategy baselines such as HyDE and Graph-RAG on faithfulness (leq 0.874).

Quantifying the similarity between a group of companies has proven to be useful for several purposes, including company benchmarking, fraud detection, and searching for investment opportunities. This exercise can be done using a variety of data sources, such as company activity data and financial data. However, ledger account data is widely available and is standardized to a large extent. Such ledger accounts within a financial statement can be represented by means of a tree, i.e. a special type of graph, representing both the values of the ledger accounts and the relationships between them. Given their broad availability and rich information content, financial statements form a prime data source based on which company similarities or distances could be computed. In this paper, we present a graph distance metric that enables one to compute the similarity between the financial statements of two companies. We conduct a comprehensive experimental study using real-world financial data to demonstrate the usefulness of our proposed distance metric. The experimental results show promising results on a number of use cases. This method may be useful for investors looking for investment opportunities, government officials attempting to identify fraudulent companies, and accountants looking to benchmark a group of companies based on their financial statements.

Finance reporting is a natural proving ground for large language models, and the very-long-context capabilities of recent models across all sizes make rigorous evaluation in this domain an increasingly pressing need. Yet most public financial resources reduce the task to plain-text SEC 10-K filings paired with a handful of question-answer items. We release LEDGER (Long-context Evaluation of Documents for Grounded Extraction and Retrieval), a corpus of 4,999 digitized corporate annual reports - full documents with figures, tables, and narrative, not just regulatory filings. Each report is labeled with 31 consolidated financial KPIs to be extracted and linked to the market's reaction at the earnings date. From this data we derive three evaluation benchmarks spanning the difficulty spectrum: a pure page-level KPI retrieval task with TREC-style relevance judgments over 118,048 questions in natural language, a conversational "needle-in-a-haystack" single-value lookup, and a full KPI extraction task, both from long, numerically dense reports. We additionally provide human OCR-quality annotations with inter-annotator agreement and the complete extraction, validation, and scoring toolchain. We further demonstrate the dataset's research utility with a case study linking CEO-letter rhetoric to post-publication market impact.

Policy-adherent tool-calling agents in customer-service domains must maintain task states across turns while calling tools and obeying domain policies. Task states consist of relevant facts, identifiers, constraints, and conditions observed through user interaction and tool calls. In standard agents, task states are not represented separately. Observations, tool returns, and policy instructions are placed in the prompt, leaving agents to reconstruct the relevant states from the prompt each time they decide what to do next. This design makes state management implicit, creating two common failure modes. An agent may retrieve the right facts but later ground its decision in stale, missing, or incorrect information; and a syntactically valid tool call may still violate a domain policy that depends on the current task state. We introduce LedgerAgent, an inference-time method for tool-calling agents that maintains observed task states in a separate ledger and renders the states into the prompt. The ledger is also used to check state-dependent policy constraints before environment-changing tool calls are executed, blocking policy violations. Across four customer-service domains and a mixed panel of open- and closed-weight models, LedgerAgent improves average passk over a standard prompt-based tool-calling approach, with the largest gains under stricter multi-trial consistency metrics.

While making investment decisions by reading financial documents, investors need to differentiate between in-claim and outof-claim numerals. In this paper, we present a tool which does it automatically. It extracts context embeddings of the numerals using one of the transformer based pre-trained language model called BERT. After this, it uses a Logistic Regression based model to detect whether the numerals is in-claim or out-of-claim. We use FinNum-3 (English) dataset to train our model. After conducting rigorous experiments we achieve a Macro F1 score of 0.8223 on the validation set. We have open-sourced this tool and it can be accessed from https://github.com/sohomghosh/FiNCAT_Financial_Numeral_Claim_Analysis_Tool

This paper addresses a long-standing problem in the field of accounting: mapping company-specific ledger accounts to a standardized chart of accounts. We propose a novel solution, TopoLedgerBERT, a unique sentence embedding method devised specifically for ledger account mapping. This model integrates hierarchical information from the charts of accounts into the sentence embedding process, aiming to accurately capture both the semantic similarity and the hierarchical structure of the ledger accounts. In addition, we introduce a data augmentation strategy that enriches the training data and, as a result, increases the performance of our proposed model. Compared to benchmark methods, TopoLedgerBERT demonstrates superior performance in terms of accuracy and mean reciprocal rank.

Large language models often produce plausible numerical claims from financial filings while using the wrong reporting period, unit, line item, or formula. Verifying such claims requires more than rechecking arithmetic: a verifier must ground the relevant facts, establish the authorized calculation, and determine whether the candidate value follows from both. We propose VeriFin, a neurosymbolic verification framework for numerical financial question answering that grounds operands in filed XBRL facts, derives calculations from the question, filing linkbases, or documented metric definitions, and checks claims using Z3. When a claim is inconsistent, solver-derived unsatisfiable cores identify the conflicting facts, formula, and candidate value, enabling targeted repair. We evaluate VeriFin on XBRLFiling, a new 600-question benchmark constructed from 10-K filings of 28 U.S. companies, and on FinanceBench. On fixed candidate pools shared by all verification methods, VeriFin accepts none of the incorrect claims, whereas the baselines accept 6 to 92 incorrect claims on XBRLFiling's 600 claims and 4 to 21 incorrect claims on FinanceBench's 67 claims. The zero false-accept result persists across multiple answer-generator models. Solver-derived feedback further improves repair, achieving up to 69.9% recovery among true catches. These results show that source-grounded symbolic verification can provide a reliable and auditable acceptance control for LLM-generated financial claims.

In this paper, we investigate the influence of claims in analyst reports and earnings calls on financial market returns, considering them as significant quarterly events for publicly traded companies. To facilitate a comprehensive analysis, we construct a new financial dataset for the claim detection task in the financial domain. We benchmark various language models on this dataset and propose a novel weak-supervision model that incorporates the knowledge of subject matter experts (SMEs) in the aggregation function, outperforming existing approaches. We also demonstrate the practical utility of our proposed model by constructing a novel measure of optimism. Here, we observe the dependence of earnings surprise and return on our optimism measure. Our dataset, models, and code are publicly (under CC BY 4.0 license) available on GitHub.

We describe a library of mathematical finance built in the Lean 4 proof assistant, on top of Mathlib and the BrownianMotion package. It is broad: more than two hundred sorry-free theorems across eleven areas, from the measure-theoretic foundations of continuous-time stochastic calculus through derivative pricing to applied risk, portfolio, and fixed-income theory, and, to our knowledge, the most comprehensive machine-checked development of mathematical finance to date. Breadth is the setting, not the point. Two things make it more than a catalogue. It reaches into the continuous theory far enough to construct the L2 Itô integral as a bounded linear isometry and to derive, rather than assume, the risk-neutral pricing measure. And it audits its own faithfulness: every result is classified by how its Lean statement relates to the mathematics it claims, and a build-enforced gate pins the axioms each proof actually uses, so a reader can see precisely what has been proved and what has only been proved under added hypotheses. We close with a candid finding: a formal base over classical financial mathematics yields certified unification of known results rather than new financial theory. The contribution is therefore methodological and infrastructural, reusable verified foundations for mathematical finance, together with the faithfulness audit.

Digital identity is unsolved: after many years of research there is still no trusted communication over the Internet. To provide identity within the context of mutual distrust, this paper presents a blockchain-based digital identity solution. Without depending upon a single trusted third party, the proposed solution achieves passport-level legally valid identity. This solution for making identities Self-Sovereign, builds on a generic provable claim model for which attestations of truth from third parties need to be collected. The claim model is then shown to be both blockchain structure and proof method agnostic. Four different implementations in support of these two claim model properties are shown to offer sub-second performance for claim creation and claim verification. Through the properties of Self-Sovereign Identity, legally valid status and acceptable performance, our solution is considered to be fit for adoption by the general public.

As Distributed Ledger Technologies (DLTs) rapidly evolve, their impacts extend beyond technology, influencing environmental and societal aspects. This evolution has increased publications, making manual literature analysis increasingly challenging. We address this with a Natural Language Processing (NLP)-based systematic literature review method to explore the intersection of Distributed Ledger Technology (DLT) with its Environmental, Social, and Governance (ESG) aspects. Our approach involves building and refining a directed citation network from 107 seed papers to a corpus of 24,539 publications and fine-tuning a transformer-based language model for Named Entity Recognition (NER) on DLT and ESG domains. Applying this model, we distilled the corpus to 505 key publications, enabling an inaugural literature review and temporal graph analysis of DLT's evolution in ESG contexts. Our contributions include an adaptable and scalable NLP-driven systematic literature review methodology and a unique NER dataset of 54,808 entities, tailored for DLT and ESG research. Our inaugural literature review demonstrates their applicability and effectiveness in analyzing DLT's evolution and impacts, proving invaluable for stakeholders in the DLT domain.

Legal claims refer to the plaintiff's demands in a case and are essential to guiding judicial reasoning and case resolution. While many works have focused on improving the efficiency of legal professionals, the research on helping non-professionals (e.g., plaintiffs) remains unexplored. This paper explores the problem of legal claim generation based on the given case's facts. First, we construct ClaimGen-CN, the first dataset for Chinese legal claim generation task, from various real-world legal disputes. Additionally, we design an evaluation metric tailored for assessing the generated claims, which encompasses two essential dimensions: factuality and clarity. Building on this, we conduct a comprehensive zero-shot evaluation of state-of-the-art general and legal-domain large language models. Our findings highlight the limitations of the current models in factual precision and expressive clarity, pointing to the need for more targeted development in this domain. To encourage further exploration of this important task, we will make the dataset publicly available.

Personalized financial advice requires consideration of user goals, constraints, risk tolerance, and jurisdiction. Prior LLM work has focused on support systems for investors and financial planners. Simultaneously, numerous recent studies examine broader personal finance tasks, including budgeting, debt management, retirement, and estate planning, through agentic pipelines that incur high maintenance costs, yielding less than 25% of their expected financial returns. In this study, we introduce a novel and reproducible framework that integrates relevant financial context with behavioral finance studies to construct supervision data for end-to-end advisors. Using this framework, we create a 19k sample reasoning dataset and conduct a comprehensive fine-tuning of the Qwen-3-8B model on the dataset. Through a held-out test split and a blind LLM-jury study, we demonstrate that through careful data curation and behavioral integration, our 8B model achieves performance comparable to significantly larger baselines (14-32B parameters) across factual accuracy, fluency, and personalization metrics while incurring 80% lower costs than the larger counterparts.

We introduce FinDVer, a comprehensive benchmark specifically designed to evaluate the explainable claim verification capabilities of LLMs in the context of understanding and analyzing long, hybrid-content financial documents. FinDVer contains 2,400 expert-annotated examples, divided into three subsets: information extraction, numerical reasoning, and knowledge-intensive reasoning, each addressing common scenarios encountered in real-world financial contexts. We assess a broad spectrum of LLMs under long-context and RAG settings. Our results show that even the current best-performing system, GPT-4o, still lags behind human experts. We further provide in-depth analysis on long-context and RAG setting, Chain-of-Thought reasoning, and model reasoning errors, offering insights to drive future advancements. We believe that FinDVer can serve as a valuable benchmark for evaluating LLMs in claim verification over complex, expert-domain documents.

Non-Fungible Tokens (NFTs) represent deeds of ownership, based on blockchain technologies and smart contracts, of unique crypto assets on digital art forms (e.g., artworks or collectibles). In the spotlight after skyrocketing in 2021, NFTs have attracted the attention of crypto enthusiasts and investors intent on placing promising investments in this profitable market. However, the NFT financial performance prediction has not been widely explored to date. In this work, we address the above problem based on the hypothesis that NFT images and their textual descriptions are essential proxies to predict the NFT selling prices. To this purpose, we propose MERLIN, a novel multimodal deep learning framework designed to train Transformer-based language and visual models, along with graph neural network models, on collections of NFTs' images and texts. A key aspect in MERLIN is its independence on financial features, as it exploits only the primary data a user interested in NFT trading would like to deal with, i.e., NFT images and textual descriptions. By learning dense representations of such data, a price-category classification task is performed by MERLIN models, which can also be tuned according to user preferences in the inference phase to mimic different risk-return investment profiles. Experimental evaluation on a publicly available dataset has shown that MERLIN models achieve significant performances according to several financial assessment criteria, fostering profitable investments, and also beating baseline machine-learning classifiers based on financial features.