The comparison between the United States and Canada: Findings from inter-relationship among corporate governance, artificial intelligence, and innovation

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Although research in the field of corporate governance has been exhaustive recently many scholars have focused on the relationship between corporate governance attributes and artificial intelligence (AI), corporate governance attributes, and corporate innovation, few studies combine corporate governance, AI, and corporate innovation. The main reason is due to the quantitative difficulties in measuring and distinguishing AI activities and corporate innovation activities in enterprises. This study examines the relationships among corporate governance attributes, AI, and corporate innovation in the context of the United States and Canada. Adopting a new perspective, we have tried to help resolve the issue using a content analysis that integrates data from over 100 companies that trade on National Association of Securities Dealers Automated Quotations (NASDAQ) and TSX to analyze the relationship between board attributes, practice of AI and firm innovation for the time 2018–2022. The results suggest that particular aspects of boards, such as board size, board diversity, and ownership concentration show significant correlations with firm AI development and innovation for overall industries, but the levels of associations also vary depending on different innovation measurements and samples considered in specific industries. Moreover, the mediating effects of AI and innovation are examined, respectively. Lastly, we also discovered changes in the industry’s attention to AI development before and after COVID-19 (2020). This research offers implications to corporate decision-makers as to how to proceed if the intent is to offer commercialized AI advancements and successful breakthrough innovations.

Keywords: Corporate Governance, Ownership Concentration, Artificial Intelligence, Innovation

JEL Classification: M31, M41

Received: 17.05.2024
Accepted: 23.05.2024

How to cite: Gouiaa, R., & Huang, R. (2024). The comparison between the United States and Canada: Findings from inter-relationship among corporate governance, artificial intelligence, and innovation. In Ž. Stankevičiūtė, A. Kostyuk, M. Venuti, & P. Ulrich (Eds.), Corporate governance: Research and advanced practices (pp. 150–160). Virtus Interpress. https://doi.org/10.22495/cgrapp28