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Artificial intelligence and corporate investment efficiency: Quasi-experimental evidence from China

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  • Li, Wen
  • Liao, Wang
  • Tang, Xuesong

Abstract

Utilizing data from Chinese A-share listed firms, we adopt a staggered difference-in-differences model to examine the impact of artificial intelligence on corporate investment efficiency, exploiting the establishment of Artificial Intelligence Innovation and Development Pilot Zones (AI Pilot Zones) as an exogenous policy shock. The results show that the implementation of the AI Pilot Zones policy significantly improves firms’ investment efficiency. This effect is more pronounced when the pilot policy emphasizes original innovation and scientific breakthroughs. Mechanism tests indicate that the AI Pilot Zones policy enhances investment efficiency through three channels: increasing investment in intelligent software, alleviating financing constraints, and curbing managerial opportunism. Heterogeneity analysis shows that the effect is particularly significant in industries with more intense competition, in non-state-owned enterprises, firms engaged in cross-regional investment activities, and those operating in highly uncertain environments. In terms of economic consequences, we find that the AI Pilot Zones policy significantly enhances future corporate value. Further analysis reveals that the AI Pilot Zones policy does not significantly affect the total corporate employment, but it does significantly raise average employee wages.

Suggested Citation

  • Li, Wen & Liao, Wang & Tang, Xuesong, 2026. "Artificial intelligence and corporate investment efficiency: Quasi-experimental evidence from China," Research in International Business and Finance, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:riibaf:v:88:y:2026:i:c:s0275531926001601
    DOI: 10.1016/j.ribaf.2026.103433
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