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How investors’ ChatGPT attention influence stock market? A liquidity perspective

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  • Li, Xiaoyu
  • Jia, Shuyang
  • Xue, Fujing
  • Hu, Nan

Abstract

ChatGPT has garnered immense popularity due to its remarkable language proficiency, enabling lifelike conversations and technically advanced responses. This study investigates whether and how investors’ attention to ChatGPT impacts stock liquidity in the financial market. We use the GPT-related questions posted by investors on Chinese Investor Interactive Platforms (IIPs) as a proxy for investors’ attention to a firm’s ChatGPT usage. Utilizing a dataset comprising 206,741 Chinese firm-date observations, we find that firm-level investors’ attention to ChatGPT increases the stock liquidity. This is driven by the decreased information asymmetry and increased probabilities of ChatGPT application among investors. Moreover, the effect is more pronounced for firms with limited AI disclosure, lower financial transparency, fewer analyst coverage, and lower institutional ownership.

Suggested Citation

  • Li, Xiaoyu & Jia, Shuyang & Xue, Fujing & Hu, Nan, 2025. "How investors’ ChatGPT attention influence stock market? A liquidity perspective," Research in International Business and Finance, Elsevier, vol. 77(PB).
    • Handle: RePEc:eee:riibaf:v:77:y:2025:i:pb:s0275531925001953
    DOI: 10.1016/j.ribaf.2025.102939
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    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • 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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