Finance and Accounting Research Seminar with Tania Babina - Artificial Intelligence and Firms' systematic Risk
Department of Finance and Accounting
You are invited to attend a Department of Finance and Accounting Research Seminar with Tania Babina, Columbia University.
| An UEBS Department of Finance and Accounting seminar | |
|---|---|
| Speaker(s) | Tania Babina, Columbia University |
| Date | 3 December 2024 |
| Time | 14:00 to 15:30 |
| Place | Online via Zoom (Zoom link available from j.adams2@exeter.ac.uk) |
Event details
Abstract
We provide direct evidence that firms' investments in new technologies affect the composition of firms' risk profiles. Leveraging comprehensive data on firm-level artificial intelligence (AI) investments, we document that firms that invest more in AI experience increases in their systematic risk, measured by market beta. This is unique to AI: robotics, IT, organizational capital, and R&D investments do not display similar effects. Our results are consistent with AI investments creating growth options: AI-investing firms become more growth-like, and the effect on market betas concentrates during market upswings and periods of increased news and attention around AI advances.
We are delighted to welcome Tania Babina from Columbia University to present a seminar, details of which are below along with a sign up sheet for one-to-ones.
Find out more about Tania Babina and their research interests here.
LINK SIGN UP SHEET.
