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When do the competitive effects of artificial intelligence investment emerge?

Author

Listed:
  • Xiao, Liang
  • Zhang, Youtian

Abstract

Utilizing panel data from 3879 A-share manufacturing listed companies spanning 2014 to 2023 and employing a two-way fixed effects model, this study investigates the impact of AI investment on enterprise market competitiveness and the moderating role of patient capital. The findings reveal a significant U-shaped relationship between AI investment and enterprise market competitiveness, with its marginal effect transitioning from negative to positive as investment levels increase. Patient capital with long-term orientation exhibits a negative moderating role, weakening the competitiveness-enhancing effects of AI investment in the short term.

Suggested Citation

  • Xiao, Liang & Zhang, Youtian, 2025. "When do the competitive effects of artificial intelligence investment emerge?," Finance Research Letters, Elsevier, vol. 86(PA).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pa:s1544612325016563
    DOI: 10.1016/j.frl.2025.108402
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    References listed on IDEAS

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