Abstract
This study examines the association between artificial intelligence innovation (AII) and stock price crash risk (SPCR). AII serves as a governance mechanism that can bolster strength in internal controls, leading to increased financial transparency and thereby reducing the likelihood of future SPCR. The results hold after accounting for possible endogeneity issues Further, we find that monitoring through corporate governance mechanisms, level of following by equity analysts, and the reduced information asymmetry constitute important channels that mediate the association between AII and SPCR. Additionally, the relationship between AII and SPCR varies across corporate life cycle stages and workplace culture.
Document Type
Journal Article
Date of Publication
1-1-2024
Publication Title
Journal of Financial Research
Publisher
Wiley
School
School of Business and Law
RAS ID
70407
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.
Comments
Zhang, J., Cui, C., Zheng, C., & Taylor, G. (2024). Artificial intelligence innovation and stock price crash risk. Journal of Financial Research. Advance online publication. https://doi.org/10.1111/jfir.12424