How to Talk When a Machine is Listening?: Corporate Disclosure in the Age of AI

Sean Cao, Wei Jiang, Baozhong Yang and Alan Zhang

No 27950, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Growing AI readership, proxied by expected machine downloads, motivates firms to prepare filings that are friendlier to machine parsing and processing. Firms avoid words that are perceived as negative by computational algorithms, as compared to those deemed negative only by dictionaries meant for human readers. The publication of Loughran and McDonald (2011) serves as an instrumental event attributing the difference-in-differences in the measured sentiment to machine readership. High machine-readership firms also exhibit speech emotion assessed as embodying more positivity and excitement by audio processors. This is the first study exploring the feedback effect on corporate disclosure in response to technology.

JEL-codes: G14 G30 (search for similar items in EconPapers)
Date: 2020-10
New Economics Papers: this item is included in nep-big and nep-cmp
Note: AP CF LE
References: Add references at CitEc
Citations: View citations in EconPapers (11)

Published as Sean Cao & Wei Jiang & Baozhong Yang & Alan L Zhang & Tarun Ramadorai, 2023. "How to Talk When a Machine Is Listening: Corporate Disclosure in the Age of AI," The Review of Financial Studies, vol 36(9), pages 3603-3642.

Downloads: (external link)
http://www.nber.org/papers/w27950.pdf (application/pdf)

Related works:
Journal Article: How to Talk When a Machine Is Listening: Corporate Disclosure in the Age of AI (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:27950

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w27950

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().