EMNLP Findings2025
FinHEAR: Human Expertise and Adaptive Risk-Aware Temporal Reasoning for Financial Decision-Making
Jiaxiang Chen, Mingxi Zou, Zhuo Wang, Qifan Wang, Danny Dongning Sun, Zhang Chi, Zenglin Xu
Abstract
Financial decision-making presents unique challenges for language models, demanding temporal reasoning, adaptive risk assessment, and responsiveness to dynamic events. While large language models (LLMs) show strong general reasoning capabilities, they often fail to capture behavioral patterns central to human financial decisions-such as expert reliance under information asymmetry, loss-averse sensitivity, and feedback-driven temporal adjustment. We propose FinHEAR, a multi-agent framework for Human Expertise and Adaptive Risk-aware reasoning. FinHEAR orchestrates specialized LLM-based agents to analyze historical trends, interpret current events, and retrieve expert-informed precedents within an event-centric pipeline. Grounded in behavioral economics, it incorporates expert-guided retrieval, confidence-adjusted position sizing, and outcome-based refinement to enhance interpretability and robustness. Empirical results on curated financial datasets show that Fin-HEAR consistently outperforms strong baselines across trend prediction and trading tasks, achieving higher accuracy and better riskadjusted returns. The code 1 is now publicly accessible.
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Builds on7
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- Automatic Chain of Thought Prompting in Large Language ModelsZhuosheng Zhang, Aston Zhang, Mu Li, Alex SmolaICLR 2023 · 234 citations
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