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The deployment of general large language models and corporate value: Evidence from the stock market

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  • Dong, Li
  • Liu, Junxian
  • Yang, Jinghan
  • Zhang, Xin

Abstract

This study investigates the impact of deploying general LLMs on corporate value by analyzing the Chinese stock market's reaction to listed companies' disclosures of DeepSeek deployment. The results show that within the event window surrounding the disclosures, the cumulative abnormal returns of the stocks are significantly positive, indicating that deploying general LLMs improves corporate value. The positive effect is stronger for API access compared to local deployment, and more pronounced in high-tech service industries, firms with higher digital technology levels, and non-state-owned enterprises. This study provides direct empirical evidence of the impact of general LLMs on corporate value.

Suggested Citation

  • Dong, Li & Liu, Junxian & Yang, Jinghan & Zhang, Xin, 2025. "The deployment of general large language models and corporate value: Evidence from the stock market," Finance Research Letters, Elsevier, vol. 86(PD).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pd:s1544612325018793
    DOI: 10.1016/j.frl.2025.108625
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