Technology Empowerment and Internal Governance Substitution: How Generative Artificial Intelligence Reshapes Corporate Investment Efficiency

DOI

10.2991/978-94-6239-777-4_87How to use a DOI?

Keywords

Generative Artificial Intelligence; Inefficient Investment; R&D Innovation; Agency Costs

Abstract

Against the backdrop of deep integration between the digital and real economy, generative artificial intelligence, as a cutting-edge general-purpose technology, is fundamentally reshaping firms’ underlying information environment and investment decision-making patterns. Using a sample of Chinese A-share-listed companies in Shanghai and Shenzhen from 2015 to 2024, this paper systematically examines the impact of generative artificial intelligence on corporate inefficient investment and the underlying mechanisms. The results show that generative artificial intelligence significantly curbs corporate inefficient investment, and this conclusion remains robust after a series of robustness checks, including distinguishing investment types, replacing explanatory variables, excluding specific samples, and adjusting model specifications. Mechanism tests reveal that GenAI effectively suppresses corporate inefficient investment through two pathways: R&D-driven innovation and mitigation of agency costs. Heterogeneity analysis indicates that the mitigating effect of GenAI on inefficient investment is more pronounced among growth-oriented firms, firms with weak executive technical backgrounds, and heavily capital-intensive industries. These findings not only extend the theoretical framework of the microeconomic consequences of artificial intelligence but also offer practical insights for real-sector firms to optimize capital allocation through digital and intelligent transformation.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Yixin Zhang
PY  - 2026
DA  - 2026/09/30
TI  - Technology Empowerment and Internal Governance Substitution: How Generative Artificial Intelligence Reshapes Corporate Investment Efficiency
BT  - Proceedings of the 2026 8th International Conference on Economic Management and Cultural Industry (ICEMCI 2026)
PB  - Atlantis Press
SP  - 859
EP  - 865
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-777-4_87
DO  - 10.2991/978-94-6239-777-4_87
ID  - Zhang2026
ER  -