DECODEM: Data Extraction from Corporate Organizational Documents via Enhanced Methods

Abstract

Much empirical legal research depends on translating unstructured text into structured variables. In corporate governance research as elsewhere, this translation has traditionally been performed by humans. Manual coding is time-consuming and costly. In corporate governance research, standardized commercial datasets offer an alternative, but they cover a limited set of firms and governance variables. This paper introduces the DECODEM Benchmarks and uses them to evaluate whether large language models can extract corporate governance variables from charters and bylaws. The benchmarks combine a sample of corporate charters and bylaws of publicly traded U.S. corporations obtained from the SEC's EDGAR database with hand-coded labels that capture whether a document includes a specific governance arrangement. The paper uses these benchmarks to evaluate a range of extraction approaches and models. The approaches vary along several dimensions, including the amount of guidance included in the prompts and the extent to which the model is provided with the full document or with relevant excerpts only. The results show that current models can recover many governance variables with high accuracy across extraction approaches. At the same time, performance varies substantially across documents and variables. In particular, extraction is less accurate for charters than for bylaws, including when the comparison is limited to variables that appear in both benchmarks. The results also show that frontier models perform comparably on the tasks evaluated here and that more elaborate extraction pipelines do not consistently improve their performance. More elaborate extraction strategies matter more for efficiency-oriented models, where they can substantially narrow the performance gap relative to frontier models.