aceCorporate Artificial Intelligence and Stock Price Crash Risk: Evidence from Chinese Listed Firms
Using a panel of 45,385 firm-year observations of Chinese A-share listed firms over 2010-2025, this paper examines whether firm-level artificial intelligence (AI) development affects stock price crash risk. Two-way fixed effects estimates show that a higher level of corporate AI development significantly reduces both the negative conditional skewness and the down-to-up volatility of firm-specific returns. The finding survives an instrumental variable strategy, the exclusion of turbulent years, alternative measur…
Higher corporate AI development was associated with lower negative skewness and down-to-up volatility in firm-specific returns, indicating reduced extreme downside risk for Chinese listed firms.
The mitigating effect is concentrated in particular groups, non-high-tech firms and firms in economically developed regions, so the finding does not apply uniformly across all firms in the sample.
Evidence
- Peer-reviewedAdvances in Economics, Management and Political Sciences2026-10-19
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Truvace Impact Record TRV-2026-1894, v1: “Corporate Artificial Intelligence and Stock Price Crash Risk: Evidence from Chinese Listed Firms.” Truvace, 2026-10-19. /record/TRV-2026-1894 (accessed at citation time). sha256 8f6acebd5b5102fc…
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