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Artificial intelligence investment, executive digital background, and stock price synchronization

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  • Zheng, Kai
  • Ruan, Yongping
  • He, Yanan

Abstract

In the context of the accelerated development of the digital economy, investment in artificial intelligence (AI) has become an important force in promoting information governance and strategic transformation within enterprises. Based on data from publicly listed manufacturing companies in China from 2010 to 2023, this paper systematically examines the impact of AI investment on stock price synchronicity and further analyzes the moderating effect of executives' digital backgrounds and the heterogeneous effects of enterprise characteristics. Empirical results indicate that AI investment significantly reduces stock price synchronicity. Results of the moderating effect suggest that executives' digital backgrounds influence the impact of AI investment on stock price synchronicity. Heterogeneity tests reveal that the negative effect of AI investment on stock price synchronicity is more pronounced in small and medium-sized enterprises, as well as in technology-intensive and asset-intensive industries, while it is not significant in large enterprises and labor-intensive industries. The conclusions of this study provide empirical evidence and management insights for manufacturing enterprises to optimize their AI investment strategies, enhance the structure of their executive teams, and improve the quality of information disclosure.

Suggested Citation

  • Zheng, Kai & Ruan, Yongping & He, Yanan, 2025. "Artificial intelligence investment, executive digital background, and stock price synchronization," Finance Research Letters, Elsevier, vol. 86(PE).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pe:s1544612325019944
    DOI: 10.1016/j.frl.2025.108740
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    References listed on IDEAS

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