Enterprise AI applications and stock price crash risk.

With Chinese A-share listed enterprises (2015-2024), this paper studies the influence of artificial intelligence applications on stock price crash risk. Our conclusion includes that AI applications significantly reduce the crash risk. The mechanism analysis reveals that artificial intelligence works by improving internal controls quality (ICQ) and decision-making efficiency (DME). Heterogeneity tests show the effect is stronger for enterprises with digital expertise among CEO and located in eastern China. This paper provides a theoretical basis for enterprises to optimize their development strategies and prevent capital market risk.