Market Valuation of Artificial Intelligence Implementation Announcements

Abstract

With the advent of artificial intelligence (AI), more and more enterprises have begun developing AI to promote their own competitive advantage and increase their business value. In order to reveal the value-added results of AI implementation, this study adopts an event study methodology to capture the abnormal returns resulting from the announcement of AI implementation. Based on the empirical results of this study, in response to the announcement of AI implementation, we find significant positive abnormal returns on the event day. With respect to the grouping analysis, the results show significant differences in average cumulative abnormal returns between announcements with detailed information and those without detailed information. In addition, our findings present significant differences in average cumulative abnormal returns between IT-companies and non-IT companies on the event day. Ultimately, according to the content analysis, only one characteristic, the frequency of negative words, is modestly and negatively correlated with average cumulative abnormal returns.