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Catering to AI audience: Firms’ disclosure strategies of AI-friendly reports

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  • Qing, Xiaoquan
  • Zhao, Wenjing
  • Li, Liaoning

Abstract

The target audience of firms’ reports has expanded beyond humans in the age of AI. This paper demonstrates that firms’ AI endowment, advances in general AI technology and investors’ AI preferences collectively promote firms to cater to AI readers by releasing AI-friendly reports. Moreover, the above effect is more salient for firms with CEOs in the early stage of their tenure. As a result of AI-friendly disclosures, firms earn abnormal returns. This paper implies that while firms’ catering behavior is mostly harmless now, any decision to get higher returns by AI tools should be approached with caution.

Suggested Citation

  • Qing, Xiaoquan & Zhao, Wenjing & Li, Liaoning, 2025. "Catering to AI audience: Firms’ disclosure strategies of AI-friendly reports," Finance Research Letters, Elsevier, vol. 86(PE).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pe:s1544612325020318
    DOI: 10.1016/j.frl.2025.108777
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    References listed on IDEAS

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