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, requiring them to handle temporally evolving, risk-sensitive, and event-driven contexts. While large language models (LLMs) demonstrate strong general reasoning abilities, they often overlook key behavioral patterns underlying human financial behavior—such as expert reliance under information asymmetry, loss-averse risk adjustment, and temporal adaptation. We propose FinHEAR, a multi-agent framework for Human Expertise and Adaptive Risk-aware reasoning. FinHEAR coordinates multiple LLM-based agents to capture historical trends, interpret current events, and incorporate expert knowledge within a unified, event-aware pipeline. Grounded in behavioral economics, FinHEAR features mechanisms for expert-guided retrieval to reduce information asymmetry, dynamic position sizing to reflect loss aversion, and feedback-driven refinement to enhance temporal consistency. Experiments on a curated real-world financial dataset show that FinHEAR consistently outperforms strong baselines in both trend forecasting and decision-making.
Anthology ID:
2025.findings-emnlp.87
Volume:
Findings of the Association for Computational Linguistics: EMNLP 2025
Month:
November
Year:
2025
Address:
Suzhou, China
Editors:
Christos Christodoulopoulos, Tanmoy Chakraborty, Carolyn Rose, Violet Peng
Venue:
Findings
SIG:
Publisher:
Association for Computational Linguistics
Note:
Pages:
1648–1672
Language:
URL:
https://aclanthology.org/2025.findings-emnlp.87/
DOI:
Bibkey:
Cite (ACL):
Jiaxiang Chen, Mingxi Zou, Zhuo Wang, Qifan Wang, Danny Dongning Sun, Zhang Chi, and Zenglin Xu. 2025. FinHEAR: Human Expertise and Adaptive Risk-Aware Temporal Reasoning for Financial Decision-Making. In Findings of the Association for Computational Linguistics: EMNLP 2025, pages 1648–1672, Suzhou, China. Association for Computational Linguistics.
Cite (Informal):
FinHEAR: Human Expertise and Adaptive Risk-Aware Temporal Reasoning for Financial Decision-Making (Chen et al., Findings 2025)
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https://aclanthology.org/2025.findings-emnlp.87.pdf
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