IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v70y2024ics1544612324012819.html
   My bibliography  Save this article

Industrial robots and corporate risk-taking value

Author

Listed:
  • Pu, Guifang
  • Xie, Yanxiang
  • Wu, Lidong
  • Wang, Kai

Abstract

This paper empirically examines the impact of industrial robot application on corporate risk-taking value using data from Chinese A-share listed manufacturing companies, measured by the Sharpe ratio. The findings indicate that industrial robots significantly enhance corporate risk-taking value through information effects, innovation, and production optimisation. Heterogeneity tests reveal that firms with higher capital density, non-state ownership, lower financing constraints, and more government subsidies experience a more substantial increase in their risk-taking value. These insights contribute to understanding the evolution of enterprise risk decisions in industrial intelligence and provide theoretical references for policies promoting industrial development.

Suggested Citation

  • Pu, Guifang & Xie, Yanxiang & Wu, Lidong & Wang, Kai, 2024. "Industrial robots and corporate risk-taking value," Finance Research Letters, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:finlet:v:70:y:2024:i:c:s1544612324012819
    DOI: 10.1016/j.frl.2024.106252
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324012819
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.106252?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Saunders, Harry D., 2014. "Toward a neoclassical theory of sustainable consumption: Eight golden age propositions," Ecological Economics, Elsevier, vol. 105(C), pages 220-232.
    3. Du, Longzheng & Lin, Weifen, 2022. "Does the application of industrial robots overcome the Solow paradox? Evidence from China," Technology in Society, Elsevier, vol. 68(C).
    4. Zhou, Zhongsheng & Li, Zhuo & Du, Shanzhong & Cao, June, 2024. "Robot adoption and enterprise R&D manipulation: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    5. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    6. Daron Acemoglu & Ufuk Akcigit & William Kerr, 2016. "Networks and the Macroeconomy: An Empirical Exploration," NBER Macroeconomics Annual, University of Chicago Press, vol. 30(1), pages 273-335.
    7. Liu, Jun & Chang, Huihong & Forrest, Jeffrey Yi-Lin & Yang, Baohua, 2020. "Influence of artificial intelligence on technological innovation: Evidence from the panel data of china's manufacturing sectors," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    8. Timothy B. Palmer & Robert M. Wiseman, 1999. "Decoupling risk taking from income stream uncertainty: a holistic model of risk," Strategic Management Journal, Wiley Blackwell, vol. 20(11), pages 1037-1062, November.
    9. Michael Hilb, 2020. "Toward artificial governance? The role of artificial intelligence in shaping the future of corporate governance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(4), pages 851-870, December.
    10. Pu, Guifang & Xie, Yanxiang & Wang, Kai, 2023. "Board faultlines and risk-taking," Finance Research Letters, Elsevier, vol. 51(C).
    11. Daron Acemoglu & Ufuk Akcigit & William Kerr, 2016. "Networks and the Macroeconomy: An Empirical Exploration," NBER Macroeconomics Annual, University of Chicago Press, vol. 30(1), pages 273-335.
    12. Daron Acemoglu & Pascual Restrepo, 2020. "Robots and Jobs: Evidence from US Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 128(6), pages 2188-2244.
    13. Guerrero, Maribel & Cunningham, James A. & Urbano, David, 2015. "Economic impact of entrepreneurial universities’ activities: An exploratory study of the United Kingdom," Research Policy, Elsevier, vol. 44(3), pages 748-764.
    14. Hock-Doepgen, Marianne & Clauss, Thomas & Kraus, Sascha & Cheng, Cheng-Feng, 2021. "Knowledge management capabilities and organizational risk-taking for business model innovation in SMEs," Journal of Business Research, Elsevier, vol. 130(C), pages 683-697.
    15. Daron Acemoglu & Pascual Restrepo, 2018. "The Race between Man and Machine: Implications of Technology for Growth, Factor Shares, and Employment," American Economic Review, American Economic Association, vol. 108(6), pages 1488-1542, June.
    16. Artyom Durnev & Randall Morck & Bernard Yeung & Paul Zarowin, 2003. "Does Greater Firm‐Specific Return Variation Mean More or Less Informed Stock Pricing?," Journal of Accounting Research, Wiley Blackwell, vol. 41(5), pages 797-836, December.
    17. repec:zbw:bofrdp:2015_025 is not listed on IDEAS
    18. repec:ags:aaea22:335879 is not listed on IDEAS
    19. Knill, April M. & Lee, Bong Soo & Mauck, Nathan, 2012. "Sovereign wealth fund investment and the return-to-risk performance of target firms," Journal of Financial Intermediation, Elsevier, vol. 21(2), pages 315-340.
    20. Xiangyu Chen & Peng Wan & Zhefeng Ma & Yu Yang, 2024. "Does corporate digital transformation restrain ESG decoupling? Evidence from China," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    21. Maretno Harjoto & Indrarini Laksmana, 2018. "The Impact of Corporate Social Responsibility on Risk Taking and Firm Value," Journal of Business Ethics, Springer, vol. 151(2), pages 353-373, August.
    22. González L., Ana C. & Rodríguez, Yeny E. & Gómez, Juan M. & Chávez, Helmuth & Chea, Jaly, 2021. "Family business risk-taking and financial performance: Is it easier said than done?," Journal of Family Business Strategy, Elsevier, vol. 12(4).
    23. Zhao, Guoqing & Bi, Xiaohan & Zhai, Kun & Yuan, Xuemei, 2024. "Influence of digital transformation on banks’ systemic risk in China," Finance Research Letters, Elsevier, vol. 63(C).
    24. Daron Acemoglu & Pascual Restrepo, 2022. "Demographics and Automation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(1), pages 1-44.
    25. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    26. repec:bof:bofrdp:urn:nbn:fi:bof-201512101464 is not listed on IDEAS
    27. Chao Liu & Jiaye Lu & Ding Li & Mengyao Jia & Kunru Han, 2023. "Are State-Owned Enterprises Really Ineffective? An Empirical Study Based on Stochastic Frontier Analysis," Mathematics, MDPI, vol. 11(3), pages 1-22, January.
    28. Huijie Zhong & Xinran Zhang & Kam C. Chan & Chao Yan, 2023. "Industrial robots and firm innovation: big data evidence from China," Journal of Accounting Literature, Emerald Group Publishing Limited, vol. 47(1), pages 100-128, October.
    29. Wang, Hua & Liao, Lingtao & Wu, Ji (George), 2023. "Robot adoption and firm's capacity utilization: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 82(C).
    30. Prettner, Klaus, 2023. "Stagnant wages in the face of rising labor productivity: The potential role of industrial robots," Finance Research Letters, Elsevier, vol. 58(PD).
    31. Qian, Kun & Liang, Xinyv & Liu, Xiaofeng, 2023. "Managerial ability, managerial risk taking and innovation performance," Finance Research Letters, Elsevier, vol. 57(C).
    32. Boubakri, Narjess & Cosset, Jean-Claude & Saffar, Walid, 2013. "The role of state and foreign owners in corporate risk-taking: Evidence from privatization," Journal of Financial Economics, Elsevier, vol. 108(3), pages 641-658.
    33. Francisco Gomes & Thomas Jansson & Yigitcan Karabulut, 2024. "Do Robots Increase Wealth Dispersion?," The Review of Financial Studies, Society for Financial Studies, vol. 37(1), pages 119-160.
    34. Li, Jianjun & Wu, Zhouyi & Yu, Kaijia & Zhao, Wei, 2024. "The effect of industrial robot adoption on firm value: Evidence from China," Finance Research Letters, Elsevier, vol. 60(C).
    35. Aiping Wang & Rui Han, 2024. "Can digital transformation prohibit corporate fraud? Empirical evidence from China," Applied Economics Letters, Taylor & Francis Journals, vol. 31(16), pages 1505-1512, September.
    36. repec:zbw:bofrdp:urn:nbn:fi:bof-201512101464 is not listed on IDEAS
    37. Abeliansky, Ana Lucia & Beulmann, Matthias & Prettner, Klaus, 2024. "Are they coming for us? Industrial robots and the mental health of workers," Research Policy, Elsevier, vol. 53(3).
    38. Wu, Hui & Wang, Yu, 2024. "Digital transformation and corporate risk taking: Evidence from China," Global Finance Journal, Elsevier, vol. 62(C).
    39. Kong, Gaowen & Huang, Jiating & Kong, Dongmin & Zhu, Ling, 2023. "Female executives, industrial robots, and stock price crash risk," Finance Research Letters, Elsevier, vol. 57(C).
    40. FU, Yunyun & SHEN, Yongchang & SONG, Malin & WANG, Weiyu, 2024. "Does artificial intelligence reduce corporate energy consumption? New evidence from China," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 548-561.
    41. van Meeteren, Michiel & Trincado-Munoz, Francisco & Rubin, Tzameret H. & Vorley, Tim, 2022. "Rethinking the digital transformation in knowledge-intensive services: A technology space analysis," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    42. Duan, Dingyun & Chen, Shaojian & Feng, Zongxian & Li, Jun, 2023. "Industrial robots and firm productivity," Structural Change and Economic Dynamics, Elsevier, vol. 67(C), pages 388-406.
    43. Lee, Chien-Chiang & Qin, Shuai & Li, Yaya, 2022. "Does industrial robot application promote green technology innovation in the manufacturing industry?," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Hua & Liao, Lingtao & Wu, Ji (George), 2023. "Robot adoption and firm's capacity utilization: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 82(C).
    2. Gasteiger, Emanuel & Prettner, Klaus, 2022. "Automation, Stagnation, And The Implications Of A Robot Tax," Macroeconomic Dynamics, Cambridge University Press, vol. 26(1), pages 218-249, January.
    3. Dai, Hangrui & Yang, Ronghai & Cao, Rongguang & Yin, Lei, 2024. "Does the application of industrial robots promote export green transformation? Evidence from Chinese manufacturing enterprises," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    4. Parteka, Aleksandra & Kordalska, Aleksandra, 2023. "Artificial intelligence and productivity: global evidence from AI patent and bibliometric data," Technovation, Elsevier, vol. 125(C).
    5. Claudia Fontanari & Antonella Palumbo, 2023. "Permanent scars: The effects of wages on productivity," Metroeconomica, Wiley Blackwell, vol. 74(2), pages 351-389, May.
    6. Cao, Yuanyuan & Chen, Shaojian & Tang, Heyan, 2025. "Robot adoption and firm export: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 210(C).
    7. Robert C. Allen, 2021. "The Interplay among Wages, Technology, and Globalization: The Labour Market and Inequality, 1620-2020," Working Papers 20210065, New York University Abu Dhabi, Department of Social Science, revised Jun 2021.
    8. Wang, Weilong & Wang, Jianlong & Ye, Huiying & Wu, Haitao, 2024. "Polluted air, smarter factories? China's robot imports shed light on a potential link," Energy Economics, Elsevier, vol. 134(C).
    9. Wang, Ting & Zhang, Yi & Liu, Chun, 2024. "Robot adoption and employment adjustment: Firm-level evidence from China," China Economic Review, Elsevier, vol. 84(C).
    10. Lin, Boqiang & Xu, Chongchong, 2024. "Enhancing energy-environmental performance through industrial intelligence: Insights from Chinese prefectural-level cities," Applied Energy, Elsevier, vol. 365(C).
    11. Abeliansky, Ana Lucia & Prettner, Klaus, 2023. "Automation and population growth: Theory and cross-country evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 208(C), pages 345-358.
    12. Lee, Chien-Chiang & Yan, Jingyang, 2024. "Will artificial intelligence make energy cleaner? Evidence of nonlinearity," Applied Energy, Elsevier, vol. 363(C).
    13. Radzivon Marozau & Maribel Guerrero & David Urbano, 2021. "Impacts of Universities in Different Stages of Economic Development," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(1), pages 1-21, March.
    14. Zhang, Aili & Zhu, Han & Sun, Xinyu, 2024. "Manufacturing intelligentization and technological innovation: Perspectives on intra-industry impacts and inter-industry technology spillovers," Technological Forecasting and Social Change, Elsevier, vol. 204(C).
    15. Zhou, Wei & Zhuang, Yan & Chen, Yan, 2024. "How does artificial intelligence affect pollutant emissions by improving energy efficiency and developing green technology," Energy Economics, Elsevier, vol. 131(C).
    16. Lin, Boqiang & Xu, Chongchong, 2024. "The effects of industrial robots on firm energy intensity: From the perspective of technological innovation and electrification," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    17. Zhou, Zhongsheng & Li, Zhuo & Du, Shanzhong & Cao, June, 2024. "Robot adoption and enterprise R&D manipulation: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    18. Michael Kuhn & Klaus Prettner, 2023. "Rising Longevity, Increasing the Retirement Age, and the Consequences for Knowledge‐based Long‐run Growth," Economica, London School of Economics and Political Science, vol. 90(357), pages 39-64, January.
    19. Pang, Ziyun, 2022. "A Note on Economic Growth and Labor Automation," MPRA Paper 112457, University Library of Munich, Germany.
    20. Yuan, Bo & Sun, Pengbo, 2024. "Does the high-tech foreign investment spark robot adoption in the developing world? Evidence from China," Structural Change and Economic Dynamics, Elsevier, vol. 71(C), pages 302-314.

    More about this item

    Keywords

    Industrial robotics applications; Risk-taking value; Mechanism testing; Scenario analysis; Spillover effects;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:70:y:2024:i:c:s1544612324012819. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.