The Intervention of Artificial Intelligence Focus Between Governance Structure and Financial Sustainability
Abstract/Description
Purpose: Considering the contemporary significance of artificial intelligence in bringing prosperity, the primary objective of this study is to investigate how corporate focus on artificial intelligence explains the causal link between governance structure and financial sustainability. Methodology: Quantitative data was gathered from annual reports of non-financial firms listed on the Pakistan Stock Exchange as panel data for the period from 2009-2022. The study applies content analysis of the more than three thousand annual reports for AI and dynamic panel regression for analysis.
Findings: The results of the study state that governance structure exerts a favorable influence on operating profitability and financial and stock market outcomes significantly. Unexpectedly, the governance mechanism does not affect the AI focus of the firm. However, AI focus enhances financial sustainability in terms of operating and monetary outcome and partially intervenes in the relations.
Originality/value: After evaluating the stated aim, this study presents novel insights into how AI can benefit a developing economy like Pakistan.
Research limitations/implications: the study limits itself to the given aim only for Pakistan-like economies.
Practical implications: AI governance frameworks are essential for organizations to manage AI-related risks and ensure ethical deployment. Core components of such frameworks include clear definitions, comprehensive inventories, established policies and standards, and a structured governance framework with controls.
Social implications: These elements collectively contribute to the responsible adoption of governance systems and AI technologies for financial sustainability in the support of stakeholders’ interests.
Keywords
Corporate governance, Governance Structure, Financial Sustainability, Artificial Intelligence Focus, Stakeholders
Track
Finance
Session Number/Theme
Finance - Session II
Session Chair
Dr. Mohsin Zahid Khawaja
Start Date/Time
14-6-2025 9:00 AM
End Date/Time
14-6-2025 10:40 AM
Location
MCC 12 Ground Floor, AMAN CED Building
Recommended Citation
Hussain, R. T., Khan, A. N., & Naseem, M. A. (2025). The Intervention of Artificial Intelligence Focus Between Governance Structure and Financial Sustainability. IBA SBS 4th International Conference 2025. Retrieved from https://ir.iba.edu.pk/sbsic/2025/program/97
COinS
The Intervention of Artificial Intelligence Focus Between Governance Structure and Financial Sustainability
MCC 12 Ground Floor, AMAN CED Building
Purpose: Considering the contemporary significance of artificial intelligence in bringing prosperity, the primary objective of this study is to investigate how corporate focus on artificial intelligence explains the causal link between governance structure and financial sustainability. Methodology: Quantitative data was gathered from annual reports of non-financial firms listed on the Pakistan Stock Exchange as panel data for the period from 2009-2022. The study applies content analysis of the more than three thousand annual reports for AI and dynamic panel regression for analysis.
Findings: The results of the study state that governance structure exerts a favorable influence on operating profitability and financial and stock market outcomes significantly. Unexpectedly, the governance mechanism does not affect the AI focus of the firm. However, AI focus enhances financial sustainability in terms of operating and monetary outcome and partially intervenes in the relations.
Originality/value: After evaluating the stated aim, this study presents novel insights into how AI can benefit a developing economy like Pakistan.
Research limitations/implications: the study limits itself to the given aim only for Pakistan-like economies.
Practical implications: AI governance frameworks are essential for organizations to manage AI-related risks and ensure ethical deployment. Core components of such frameworks include clear definitions, comprehensive inventories, established policies and standards, and a structured governance framework with controls.
Social implications: These elements collectively contribute to the responsible adoption of governance systems and AI technologies for financial sustainability in the support of stakeholders’ interests.
