Do Generative AI Disclosure Narratives Affect Equity Valuation? The Mediating Role of Information Asymmetry in the Indonesian Capital Market around ChatGPT’s Launch (2021–2025)

DOI

10.2991/978-94-6239-811-5_42How to use a DOI?

Keywords

Bid-Ask Spread; Firm Value; GenAI disclosure; Information Asymmetry; Tobin’s Q

Abstract

This study investigates the effects of the intensity of Generative AI (GenAI) adoption disclosure on company value and information asymmetry and whether asymmetry transmits the first effect to the second. This is of quantitative-explanatory-associative type. Nine inclusion criteria applied to non-financial LQ45 issuers on the Indonesia Stock Exchange left 46 firms and 172 firm-year observations from 2021 to 2025. Disclosure intensity comes from an original hybrid composite index. We constructed it by reading annual reports with massive language model support, attaching each positive score to a verbatim quotation, and a blind second coder returned Krippendorff’s alpha of 0.805. Tobin’s Q is a proxy for business value and the Corwin-Schultz bid-ask spread is a proxy for information asymmetry I estimate the causal effect of using a chatbot to get help with homework using a combination of ordinary least squares regression with the Hayes PROCESS Model 4 mediation technique on 5,000 bootstrap resamples, a difference-in-differences test around the launch of the chatbot, and control-set sensitivity tests. All three tests concur. H3: GenAI disclosure does not impact firm valuation (1.130; p = 0.101). The coefficient on information asymmetry is 0.00100 and is insignificant (p = 0.392). The indirect effect through the spread is 0.005 and its 95 percent bootstrap confidence interval [-0.147; 0.161] comprises zero. Neither of the three possibilities is confirmed. The Indonesian issuers generally write operational and strategic narrative with little measurable responsibility and the market is not pricing it yet.

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.

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TY  - CONF
AU  - Dzaki Muhammad Yusfian
AU  - Baldric Siregar
AU  - Miswanto
AU  - Frasto Biyanto
PY  - 2026
DA  - 2026/10/29
TI  - Do Generative AI Disclosure Narratives Affect Equity Valuation? The Mediating Role of Information Asymmetry in the Indonesian Capital Market around ChatGPT’s Launch (2021–2025)
BT  - Proceedings of the International Conference on Business, Economic, and Social Sustainability (ICOBES 2026)
PB  - Atlantis Press
SP  - 532
EP  - 545
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-811-5_42
DO  - 10.2991/978-94-6239-811-5_42
ID  - Yusfian2026
ER  -