The impact of AI innovation announcements on firm value in supermarkets: an event study analysis
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2025-06-23
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en
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As Artificial Intelligence (AI) becomes increasingly embedded in business strategy, it remains unclear how investors respond to AI innovation announcements. Particularly in the supermarket sector, which is characterized by low margins and high pressure to innovate. While AI holds the potential to enhance both customer experience and operational efficiency, prior research has not examined its effect on firm value in this specific sector. This study addresses this gap by analyzing 41 announcements from publicly listed Western supermarkets between 2020 and 2024. Drawing on signaling theory and using an event study methodology, the findings indicate that AI announcements generally lead to a positive firm value. This study also considers the type of announcement (customer-oriented versus process-oriented). However, findings showed that customer-oriented innovations have a less favorable effect on firm value than process-oriented innovations. Further, the findings show that firm size has no effect in the relationship of AI announcements on firm value. The findings contribute to the growing literature on AI by offering sector-specific insights in investor responses.
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Faculteit der Managementwetenschappen