Skip to main content

LUP Student Papers

LUND UNIVERSITY LIBRARIES

Board Effectiveness and Artificial Intelligence Disclosure

Sandström, Nathalie LU and Spodenkiewicz, Sara LU (2023) BUSN79 20231
Department of Business Administration
Abstract
As a relatively new phenomenon, Artificial Intelligence (AI) has already proven itself to carry the ability to transform modern-day society. With increased AI use becoming more and more prevalent, both its benefits and potential consequences come to light. Companies wishing to reap the benefits AI can offer also need to consider the possible risks associated with its adoption. Many companies decide to voluntarily disclose information about AI, whether about the use and deployment, the ethical implications or general statements about the phenomenon. The purpose of this study is to investigate the relationship between the effectiveness of the board of directors of Swedish listed firms and AI disclosures. No previous studies have looked at... (More)
As a relatively new phenomenon, Artificial Intelligence (AI) has already proven itself to carry the ability to transform modern-day society. With increased AI use becoming more and more prevalent, both its benefits and potential consequences come to light. Companies wishing to reap the benefits AI can offer also need to consider the possible risks associated with its adoption. Many companies decide to voluntarily disclose information about AI, whether about the use and deployment, the ethical implications or general statements about the phenomenon. The purpose of this study is to investigate the relationship between the effectiveness of the board of directors of Swedish listed firms and AI disclosures. No previous studies have looked at this particular relationship, and this paper is the first to use a comprehensive measure of board effectiveness, the Board Effectiveness Index, in Sweden. Two regression models are conducted on a sample of 121 Swedish companies listed on the OMX Stockholm Large Cap. The results indicate a non-significant relationship between the decision to disclose AI-related information and board effectiveness, however a positive and significant relationship between AI disclosure volume and board size as well as board independence can be established. Board skills show a non-significant relationship with the volume of AI disclosure. The study makes a contribution in the field of corporate governance and corporate disclosure. (Less)
Please use this url to cite or link to this publication:
author
Sandström, Nathalie LU and Spodenkiewicz, Sara LU
supervisor
organization
alternative title
A quantitative study analysing the relationship between the effectiveness of the board of directors and disclosures regarding Artificial Intelligence
course
BUSN79 20231
year
type
H1 - Master's Degree (One Year)
subject
keywords
Corporate Governance, Board of Directors, Board Effectiveness, Disclosures, Artificial Intelligence
language
English
id
9130322
date added to LUP
2023-09-12 16:05:25
date last changed
2023-09-12 16:05:25
@misc{9130322,
  abstract     = {{As a relatively new phenomenon, Artificial Intelligence (AI) has already proven itself to carry the ability to transform modern-day society. With increased AI use becoming more and more prevalent, both its benefits and potential consequences come to light. Companies wishing to reap the benefits AI can offer also need to consider the possible risks associated with its adoption. Many companies decide to voluntarily disclose information about AI, whether about the use and deployment, the ethical implications or general statements about the phenomenon. The purpose of this study is to investigate the relationship between the effectiveness of the board of directors of Swedish listed firms and AI disclosures. No previous studies have looked at this particular relationship, and this paper is the first to use a comprehensive measure of board effectiveness, the Board Effectiveness Index, in Sweden. Two regression models are conducted on a sample of 121 Swedish companies listed on the OMX Stockholm Large Cap. The results indicate a non-significant relationship between the decision to disclose AI-related information and board effectiveness, however a positive and significant relationship between AI disclosure volume and board size as well as board independence can be established. Board skills show a non-significant relationship with the volume of AI disclosure. The study makes a contribution in the field of corporate governance and corporate disclosure.}},
  author       = {{Sandström, Nathalie and Spodenkiewicz, Sara}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Board Effectiveness and Artificial Intelligence Disclosure}},
  year         = {{2023}},
}