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Cybersecurity legislation and corporate AI adoption: Evidence from China—A pre-registered report

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  • Zhuoyan Lao,
  • Guan, Yimeng

Abstract

This pre-registered report tries to investigate whether and how cybersecurity legislation affects corporate AI adoption. Drawing on textual analysis to construct firm-level AI adoption measures, we are going to use the implementation of the Cybersecurity Law as a quasi-natural experiment and conduct a difference-in-differences (DID) analysis. We further explore potential mechanisms, including cost driven channel, risk mitigation channel, and managerial adaptation channel. We also assess heterogeneity across firm characteristics and regional law enforcement. This study contributes to the emerging literature on the institutional determinants of AI adoption and offers new insights into how data governance frameworks shape firm-level technology decisions in emerging economies.

Suggested Citation

  • Zhuoyan Lao, & Guan, Yimeng, 2026. "Cybersecurity legislation and corporate AI adoption: Evidence from China—A pre-registered report," Pacific-Basin Finance Journal, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:pacfin:v:95:y:2026:i:c:s0927538x25003385
    DOI: 10.1016/j.pacfin.2025.103001
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    JEL classification:

    • K24 - Law and Economics - - Regulation and Business Law - - - Cyber Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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