Boom of Artificial Intelligence: Complement or Substitute?
Abstract/Description
Purpose: The purpose of the current is to investigate the role of the emergence of AI stock in the performance of global, developed, emerging, and domestic stocks. More specifically to investigate whether AI stocks play a role as a complement or substitute for other stocks.
Study design/methodology/approach: The study uses simple regression, EGARCH(1,1) model, and regression in upper and lower quantiles to investigate the objective of the study.
Findings: The results of simple regression indicate that the AI stock index has a positive significant impact on global stocks, emerging stocks, and domestic stocks. In other words, the increasing demand for AI stocks also increases the value of other stocks which indicates the role of AI as a complement to the other stocks. The results of the bivariate EGARCH (1,1) model verify the volatility spillover of AI stocks to the other stock markets. Further, the regression in upper and lower quantiles shows that AI stocks also play a role as a complement in the extreme market conditions for global stocks, emerging stocks, and domestic stocks.
Originality/value: The study contributes to the literature by providing the role of increasing demand for AI stock on other stock markets.
Research limitations/implications: The unavailability of data for all the AI stocks is a major limitation of the study.
Practical implications: The findings of the study are useful for investor, managers, and policy makers to make decision related to AI stocks.
Social implications: The study also increase the confidence about the future impacts of the AI stocks.
Track
Finance
Session Number/Theme
2A: Finance
Session Chair
Dr. Azima Khan ; Dr. Ameenullah Aman
Start Date/Time
30-5-2024 3:25 PM
End Date/Time
30-5-2024 4:55 PM
Location
MCS – 3 AMAN CED Building
Recommended Citation
Marwat, J. (2024). Boom of Artificial Intelligence: Complement or Substitute?. 3rd IBA SBS International Conference 2024. Retrieved from https://ir.iba.edu.pk/sbsic/2024/program/18
COinS
Boom of Artificial Intelligence: Complement or Substitute?
MCS – 3 AMAN CED Building
Purpose: The purpose of the current is to investigate the role of the emergence of AI stock in the performance of global, developed, emerging, and domestic stocks. More specifically to investigate whether AI stocks play a role as a complement or substitute for other stocks.
Study design/methodology/approach: The study uses simple regression, EGARCH(1,1) model, and regression in upper and lower quantiles to investigate the objective of the study.
Findings: The results of simple regression indicate that the AI stock index has a positive significant impact on global stocks, emerging stocks, and domestic stocks. In other words, the increasing demand for AI stocks also increases the value of other stocks which indicates the role of AI as a complement to the other stocks. The results of the bivariate EGARCH (1,1) model verify the volatility spillover of AI stocks to the other stock markets. Further, the regression in upper and lower quantiles shows that AI stocks also play a role as a complement in the extreme market conditions for global stocks, emerging stocks, and domestic stocks.
Originality/value: The study contributes to the literature by providing the role of increasing demand for AI stock on other stock markets.
Research limitations/implications: The unavailability of data for all the AI stocks is a major limitation of the study.
Practical implications: The findings of the study are useful for investor, managers, and policy makers to make decision related to AI stocks.
Social implications: The study also increase the confidence about the future impacts of the AI stocks.
Comments
This paper focuses on impact of AI stocks on other stock markets