Kai Yao, Jingyi Zhao, Thach Vu Hong Nguyen, Thanaset Chevapatrakul
Working paper 2025
This paper investigates the impact of AI salience in conference calls on stock market reaction. Using the Word2vec model to quantify the AI salience in a firm’s conference call transcript, we find a short-term rise in the company’s CAR associated with AI salience, followed by a long-term reversal. We also note that higher salience is associated with lower subsequent firm performance, higher insider selling, and lower granted options. Rather than presenting the payoff salience on stock perception, our research heightens the crucial role of AI information salience for the markets.