Finance Seminar with Tania Babina, Columbia Business School

On Friday, October 4, 2024, Tania Babina, Columbia Business School, will be giving a seminar on the paper: Artificial Intelligence and Firms' Systematic Risk

Friday, October 4, 2024 - 11:00 to 12:15

The Department of Finance is proud to announce the upcoming seminar with Tania Babina, Columbia Business School.

Tania Babina will present: Artificial Intelligence and Firms' Systematic Risk

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.

Location:
Solbjerg Plads 3
2000 Frederiksberg
Room: SPs03

The page was last edited by: Department of Finance // 09/09/2024