When financial expertise shapes AI narratives in China: CEO financial background and symbolic AI disclosure

Purpose This study examines whether CEO financial background shapes corporate artificial intelligence (AI) overclaiming in an emerging-market context. Drawing on upper echelons theory (UET), we argue that financially experienced CEOs may frame AI as a market-oriented strategic narrative while underinvesting in the long-term technological capabilities needed to substantiate such claims. Design/methodology/approach Using Chinese A-share listed firms from 2010 to 2023, we measure AI overclaiming as the gap between AI disclosure and invention-based AI capability. We estimate models with firm and year fixed effects and validate the findings through robustness tests, including AI investment- and residual-based measures, as well as endogeneity, placebo and channel analyses. Findings CEO financial background is positively associated with corporate AI overclaiming. Channel analyses suggest that financially experienced CEOs widen the disclosure–capability gap by increasing short-term financial asset allocation and reducing R&D investment. This effect is stronger when external verification is weak, market pressure is high and policy-driven AI narratives are more salient. Originality/value This study identifies CEO financial background as a managerial antecedent of AI overclaiming. It extends UET by showing how financial career imprints shape emerging-technology narratives and resource allocation. It also advances AI overclaiming research in emerging markets by showing that weak verification, state-guided capital allocation and policy-driven AI narratives intensify symbolic–substantive decoupling.

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Publication Details

Journal
International Journal of Emerging Markets
Published
2026-11-03
DOI
https://doi.org/10.1108/ijoem-04-2026-0874
Primary Topic
Auditing, Earnings Management, Governance
Type
article
Field-Weighted Citation Impact
0.00
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article

When financial expertise shapes AI narratives in China: CEO financial background and symbolic AI disclosure

Yimei Man, Yufei Gan
International Journal of Emerging Markets
Auditing, Earnings Management, Governance
article

When financial expertise shapes AI narratives in China: CEO financial background and symbolic AI disclosure

Yimei Man, Yufei Gan
article en

Abstract

Purpose This study examines whether CEO financial background shapes corporate artificial intelligence (AI) overclaiming in an emerging-market context. Drawing on upper echelons theory (UET), we argue that financially experienced CEOs may frame AI as a market-oriented strategic narrative while underinvesting in the long-term technological capabilities needed to substantiate such claims. Design/methodology/approach Using Chinese A-share listed firms from 2010 to 2023, we measure AI overclaiming as the gap between AI disclosure and invention-based AI capability. We estimate models with firm and year fixed effects and validate the findings through robustness tests, including AI investment- and residual-based measures, as well as endogeneity, placebo and channel analyses. Findings CEO financial background is positively associated with corporate AI overclaiming. Channel analyses suggest that financially experienced CEOs widen the disclosure–capability gap by increasing short-term financial asset allocation and reducing R&D investment. This effect is stronger when external verification is weak, market pressure is high and policy-driven AI narratives are more salient. Originality/value This study identifies CEO financial background as a managerial antecedent of AI overclaiming. It extends UET by showing how financial career imprints shape emerging-technology narratives and resource allocation. It also advances AI overclaiming research in emerging markets by showing that weak verification, state-guided capital allocation and policy-driven AI narratives intensify symbolic–substantive decoupling.

International Journal of Emerging MarketsVol. 21(13)
University of Otago (NZ)
Openalex Percentile: Top 8%
Auditing, Earnings Management, Governance
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