IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v91y2026ics1544612326000516.html

Financial patience and technological ambition: How patient capital shapes corporate AI strategy

Author

Listed:
  • Zhang, Jiangang

Abstract

Artificial intelligence (AI) has become a strategic frontier shaping national competitiveness and redefining the financial foundations of technological transformation. Yet the governance mechanisms through which patient capital supports firms’ strategic commitment to AI remain insufficiently understood. Using data on Chinese A-share listed firms from 2007 to 2023, this study constructs an AI strategy expression indicator and empirically evaluates the impact of patient capital on firms’ AI orientation. The findings show that patient capital significantly strengthens AI strategy, underscoring its governance value in high uncertainty and long horizon investment. Mechanism analysis further demonstrates that patient capital fosters long-termism, reduces agency costs, and improves the information environment, thereby enhancing firms’ strategic allocation in complex technologies. This study highlights the governance function of patient capital in intelligent transformation and provides evidence for the coordinated evolution of AI-driven technological upgrading and capital governance in emerging markets.

Suggested Citation

  • Zhang, Jiangang, 2026. "Financial patience and technological ambition: How patient capital shapes corporate AI strategy," Finance Research Letters, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:finlet:v:91:y:2026:i:c:s1544612326000516
    DOI: 10.1016/j.frl.2026.109520
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612326000516
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2026.109520?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

    for a different version of it.

    References listed on IDEAS

    as
    1. Hyun‐Dong Kim & Kwangwoo Park & Kyojik Roy Song, 2019. "Do long‐term institutional investors foster corporate innovation?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 59(2), pages 1163-1195, June.
    2. Pang, Yuhui & Guo, Rongjun & Zhao, Yuhao & Dong, Liang, 2025. "Exploring the impact of traditional cultural intensity and patient capital on sustainable green innovation in listed companies: A mediation and heterogeneity analysis," International Review of Economics & Finance, Elsevier, vol. 103(C).
    3. Li Wei & Wu Chengshu, 2024. "Company ESG performance and institutional investor ownership preferences," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 33(3), pages 287-307, July.
    4. Zhang, Jiangang & Cao, Zhimin, 2026. "Assessing the potential of trade policy in promoting inclusive green growth: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 89(C), pages 1005-1025.
    5. Thomas Brekke & Sambit Lenka & Marko Kohtamäki & Vinit Parida & Birgit Andrine Apenes Solem, 2024. "Overcoming barriers to transformation in manufacturing firms. A path-dependence perspective of digital servitization," Review of Managerial Science, Springer, vol. 18(2), pages 385-412, February.
    6. Lai, Lingyun, 2025. "Optimization of Valuation Models for AI Investment Projects and Decision Support," European Journal of AI, Computing & Informatics, Pinnacle Academic Press, vol. 1(2), pages 1-6.
    7. Roberto Moro-Visconti, 2024. "The Valuation of Artificial Intelligence-Driven Know-How and Patents," Springer Books, in: Artificial Intelligence Valuation, chapter 0, pages 205-291, Springer.
    8. Roberto Moro-Visconti, 2024. "The Valuation of Software as a Prerequisite for Artificial Intelligence," Springer Books, in: Artificial Intelligence Valuation, chapter 0, pages 345-404, Springer.
    9. Roberto Moro-Visconti, 2024. "Artificial Intelligence Valuation," Springer Books, Springer, number 978-3-031-53622-9, October.
    10. Chune Young Chung, 2025. "Do long-term institutional investors enhance corporate long-term value orientation?," Applied Economics, Taylor & Francis Journals, vol. 57(53), pages 8839-8855, November.
    11. Caroline Flammer & Pratima Bansal, 2017. "Does a long-term orientation create value? Evidence from a regression discontinuity," Strategic Management Journal, Wiley Blackwell, vol. 38(9), pages 1827-1847, September.
    12. Roberto Moro-Visconti, 2024. "The Valuation of Artificial Intelligence-Driven Startups," Springer Books, in: Artificial Intelligence Valuation, chapter 0, pages 293-344, Springer.
    13. Xu, Jia & Zeng, Shu & Qi, Shaozhou & Cui, Jingbo, 2023. "Do institutional investors facilitate corporate environmental innovation?," Energy Economics, Elsevier, vol. 117(C).
    14. Wang, Zhaochen & Ma, Jing & Yao, Yuanyuan & Wu, Na, 2025. "Executive environmental concerns, patient capital, and corporate green innovation performance," International Review of Financial Analysis, Elsevier, vol. 108(PA).
    15. Zhang, Wei & Cheng, Na & Li, Qiuyang & Hu, Xinyi & Lei, Xue, 2025. "The digital odyssey: Why management team stability matters for corporate transformation," Finance Research Letters, Elsevier, vol. 86(PF).
    16. Md Miran Hossain & Babak Mammadov & Hamid Vakilzadeh, 2022. "Wisdom of the crowd and stock price crash risk: evidence from social media," Review of Quantitative Finance and Accounting, Springer, vol. 58(2), pages 709-742, February.
    17. Xiaolong Gu & Zhe An & Chen Chen & Donghui Li, 2023. "Do foreign institutional investors monitor opportunistic managerial behaviour? Evidence from real earnings management," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(1), pages 317-351, March.
    18. Roberto Moro-Visconti, 2024. "The Valuation of Artificial Intelligence," Springer Books, in: Artificial Intelligence Valuation, chapter 0, pages 405-506, Springer.
    19. Stephen B. Kaplan, 2018. "The Rise of Patient Capital: The Political Economy of Chinese Global Finance," Working Papers 2018-2, The George Washington University, Institute for International Economic Policy, revised Jul 2018.
    20. Yishu Liu & Wanyi Chen & Yilin Luo, 2025. "Do long-term institutional investors constrain managerial disclosure opportunism? Evidence from insurance ownership," Accounting Forum, Taylor & Francis Journals, vol. 49(5), pages 1009-1037, October.
    21. Ning Xu & Di Zhang & Yingjie Bai, 2024. "Managerial long‐termism and corporate innovation: Evidence from China through text mining approaches," Business Strategy and the Environment, Wiley Blackwell, vol. 33(3), pages 2269-2286, March.
    22. Zhang, Jiangang & Cao, Zhimin, 2026. "Digital Financial Infrastructure and Corporate Sustainability: Evidence from China’s e-CNY," Finance Research Letters, Elsevier, vol. 90(C).
    23. Yang, Yingjun & Cheng, Lihong & Ni, Lin & Xu, Xin, 2025. "Debt financing costs, patient capital, and the resilience of real estate enterprises," Finance Research Letters, Elsevier, vol. 83(C).
    24. Xueguo Xu & Hetong Yuan & Xue Lei, 2024. "From Technological Integration to Sustainable Innovation: How Diversified Mergers and Acquisitions Portfolios Catalyze Breakthrough Technologies," Sustainability, MDPI, vol. 16(24), pages 1-16, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Angelo Leogrande & Fabio Anobile & Alberto Costantiello & Carlo Drago & Massimo Arnone, 2026. "Who Finances the Carbon Transition? Financial Structure, Institutional Quality, and Emissions in OECD Economies," Working Papers hal-05526715, HAL.

    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. Yungang Tang & Yaoqian Liu & Daxin Liu, 2025. "Data asset valuation model based on generative artificial intelligence," PLOS ONE, Public Library of Science, vol. 20(8), pages 1-17, August.
    2. Galloppo, Giuseppe & Guida, Roberto & Paimanova, Viktoriia & Urbani, Roberto, 2026. "Green innovation is the need of the hour: the role of regional-level framework and institutional investor types," Finance Research Letters, Elsevier, vol. 87(C).
    3. Nan Wu & Boqiang Lin, 2026. "Green information disclosure and shareholding preferences of institutional investors: the case of China," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 12(1), pages 1-32, December.
    4. Wang, Yibo, 2025. "Institutional investors’ field research and corporate green innovation," International Review of Economics & Finance, Elsevier, vol. 103(C).
    5. Caroline Flammer & Michael W. Toffel & Kala Viswanathan, 2021. "Shareholder activism and firms' voluntary disclosure of climate change risks," Strategic Management Journal, Wiley Blackwell, vol. 42(10), pages 1850-1879, October.
    6. Chen, Xuchang & Wu, Changqi & Xie, Xuanli, 2025. "Foreign ownership and corporate litigation risk," Journal of Business Research, Elsevier, vol. 189(C).
    7. Zhang, Dongyang, 2023. "Does green finance really inhibit extreme hypocritical ESG risk? A greenwashing perspective exploration," Energy Economics, Elsevier, vol. 121(C).
    8. Li, Qian & Liu, Shangqun, 2023. "Does alternative data reduce stock price crash risk? Evidence from third-party online sales disclosure in China," International Review of Financial Analysis, Elsevier, vol. 88(C).
    9. Nhat Anh Dang & Emeka T. Nwaeze & Daniela Sanchez & Juan Manuel Sanchez, 2026. "The Impact of Workforce Diversity on Labour Efficiency, Investment Efficiency and Innovation," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 66(1), pages 760-784, March.
    10. Li, Wanli & Li, Yue & Jacoby, Gady & Wu, Zhenyu, 2022. "Antidumping, firm performance, and subsequent responses," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 76(C).
    11. Breuer, Wolfgang & Knetsch, Andreas & Siemer, Luis Maria, 2026. "Rethinking Short-Termism: When shareholder impatience reduces short-termism," Finance Research Letters, Elsevier, vol. 92(C).
    12. Huang, Minjie & Kubick, Thomas R. & Tseng, Kevin, 2021. "Technology spillovers and the duration of executive compensation," Journal of Banking & Finance, Elsevier, vol. 131(C).
    13. Neubert, Mitchell J. & Montañez, George D., 2020. "Virtue as a framework for the design and use of artificial intelligence," Business Horizons, Elsevier, vol. 63(2), pages 195-204.
    14. Zhang, Jiangang & Cao, Zhimin, 2026. "Assessing the potential of trade policy in promoting inclusive green growth: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 89(C), pages 1005-1025.
    15. Guomin Li & Wenyi Tang, 2025. "The Impact of Carbon Risk on Value Creation of High-Carbon-Emission Enterprises: Evidence from China," Sustainability, MDPI, vol. 17(20), pages 1-22, October.
    16. Xue Lei & Jian Xu & Ziyan Zhang, 2025. "Can the Energy Rights Trading System Become the New Engine for Corporate Carbon Reduction? Evidence from China’s Heavy-Polluting Industries," Sustainability, MDPI, vol. 17(18), pages 1-19, September.
    17. Garanina, Tatiana & Kim, Oksana, 2023. "The relationship between CSR disclosure and accounting conservatism: The role of state ownership," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 50(C).
    18. Driss, Hamdi & Drobetz, Wolfgang & El Ghoul, Sadok & Guedhami, Omrane, 2021. "Institutional investment horizons, corporate governance, and credit ratings: International evidence," Journal of Corporate Finance, Elsevier, vol. 67(C).
    19. Fujun Lai & Qiong Wu & Deping Xiong & Sha Zhu, 2024. "How Foreign Institutional Investors’ Ownership Affects Stock Liquidity? Evidence from China," SAGE Open, , vol. 14(2), pages 21582440241, June.
    20. Sun, Yuan & Wen, YouYun & Jiang, Senyang & Zhang, Haoxiang, 2024. "The ripple effect of environmental shareholder activism and corporate green innovation: Evidence from Chinese listed companies," International Review of Financial Analysis, Elsevier, vol. 93(C).

    More about this item

    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
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • 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:91:y:2026:i:c:s1544612326000516. 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.