The Impact of Artificial Intelligence Adoption on Corporate Governance in Chinese Listed Companies: An Empirical Study Based on Agency Costs
Year: 2025
Type: article
Abstract: In the era of rapid digital transformation, artificial intelligence (AI) has emerged as a transformative force with broad applications across industries. However, its impact on corporate governance—particularly in Chinese enterprises—remains under-researched. This study addresses this gap by empirically examining how AI adoption influences corporate governance in Chinese A-share listed firms from 2010 to 2024, utilizing financial data from the CSMAR database. By measuring AI application through text-based proxy variables and assessing governance via agency costs, the research reveals that higher levels of AI adoption are significantly associated with lower agency costs. The study theoretically extends traditional governance determinants by integrating artificial intelligence, and, in practice, highlights AI’s role in reducing agency costs and enhancing governance efficiency. This work underscores the importance of technological innovation in shaping modern corporate governance and provides insights for firms and regulators navigating digital transformation. The research acknowledges unexplored mediating mechanisms, offering avenues for future studies on heterogeneous effects and operational pathways.
Author: Yaxin Xue
Institution: Liaoning University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4411494549