Looking in the rear-view mirror: Evidence from artificial intelligence investment, labour market conditions and firm growth
Tingbani, Ishmael and Salia, Samuel and Hartwell, Christopher A. and Alhassan, Yahaya (2024) Looking in the rear-view mirror: Evidence from artificial intelligence investment, labour market conditions and firm growth. International Journal of Finance and Economics. ISSN 1076-9307
|
Text
Int J Fin Econ - 2024 - Tingbani - Looking in the rear‐view mirror Evidence from artificial intelligence investment .pdf - Published Version Available under License Creative Commons Attribution. Download (1MB) |
|
![[img]](/style/images/fileicons/other.png) |
Other (Table)
Tables_Final.docx - Accepted Version Download (71kB) |
Abstract
This paper presents evidence of the impact of AI investment on firm growth and how the relationship is sensitive to labour market conditions. Using the generalised method of moments (GMM) estimation on 1,950 unique American firms over 1996-2016, we show that a 10% increase in AI investment leads to an increase in firm growth by 0.04%. However, this result is highly sensitive to labour market conditions, as labour productivity can positively impact firm growth, but labour cost and labour share negatively influence firm growth. These results offer original insights into an essential channel via which investment in AI may mediate firm growth.
| Item Type: | Article | ||||||
|---|---|---|---|---|---|---|---|
| Identification Number: | https://doi.org/10.1002/ijfe.2945 | ||||||
| Dates: |
|
||||||
| Subjects: | CAH15 - social sciences > CAH15-02 - economics > CAH15-02-01 - economics CAH17 - business and management > CAH17-01 - business and management > CAH17-01-02 - business studies CAH17 - business and management > CAH17-01 - business and management > CAH17-01-05 - human resource management CAH17 - business and management > CAH17-01 - business and management > CAH17-01-07 - finance |
||||||
| Divisions: | Faculty of Business, Law and Social Sciences > Birmingham City Business School > Centre for Accountancy Finance and Economics | ||||||
| Depositing User: | Samuel Salia | ||||||
| Date Deposited: | 05 Mar 2024 13:06 | ||||||
| Last Modified: | 05 Mar 2024 13:06 | ||||||
| URI: | https://www.open-access.bcu.ac.uk/id/eprint/15307 |
Actions (login required)
 |
View Item |
Tools
Tools