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Artificial Intelligence and Corporate Investment Decisions

2024· article· en· W4400445696 on OpenAlex
Dimitrios Gounopoulos, Chen Huang, Geoffrey Wood, Aoran Zhang

Why this work is in the frame

A frame that forgets how it found something cannot be audited. These are the routes that admitted this work.

affAt least one author lists a Canadian institution in the pinned OpenAlex snapshot.

Bibliographic record

VenueAcademy of Management Proceedings · 2024
Typearticle
Languageen
FieldDecision Sciences
TopicStock Market Forecasting Methods
Canadian institutionsWestern University
Fundersnot available
KeywordsBusinessInvestment decisionsInvestment (military)FinancePolitical scienceBehavioral economics

Abstract

fetched live from OpenAlex

Using mergers and acquisitions (M&As) as a proxy, and looking at the case of the US, we find that managers from firms that are more able to substitute human workers with artificial intelligence (AI) are likely to adopt aggressive corporate investment policies, and thereby are more prone to engage in M&As. We reveal that internal and external corporate governance moderates the relationship between AI automation susceptibility and M&A investments. The results hold after the consideration of selection bias and endogeneity issues. At a theoretical level, our study builds on earlier work that suggests a linkage between AI and market concentration. The structural intersectional theoretical literature focuses on the impact of AI-using firms on other actors, but intentionally casts a wide net; it is held that the AI has complex and polyvalent effects, and its usage of data and decision making is one that seeks to afford clear advantage to those deploying it. There is also an association between firm usage of AI and the concentration of markets. This study seeks to deepen this understanding by exploring the approach of AI deploying firms towards others in their sphere; they are more prone to acquiring those firms who supply them or who they supply, which in turn, is likely to contribute to the further foreclosure of competition. We draw out the implications for policy and practice.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.008
metaresearch head score (Gemma)0.002
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.553
Threshold uncertainty score0.626

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0080.002
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0010.002
Science and technology studies0.0000.000
Scholarly communication0.0000.001
Open science0.0010.001
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.329
GPT teacher head0.425
Teacher spread0.096 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it