Iranian Journal of Finance

Exploring the Role of Artificial Intelligence in Corporate Financial Asset Allocation: Evidence from the Tehran Stock Exchange

Document Type : Original Article

Authors

Moslem Nilchi 1
Mohammad Ali Heidarihaei 2

1 Assistant Prof, Department of Management, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran.

2 Former Visiting Professor, Faculty of Economics, University of Tehran; M.A. in Theoretical Economics, Tehran, Iran.

10.30699/ijf.2025.232445
Abstract
Although previous research has examined the application of artificial intelligence (AI) across various areas of finance, there remains limited empirical evidence regarding its impact on corporate financial asset allocation. This gap is particularly evident when considering the organisational capabilities that enable firms to utilise AI technologies effectively. In the rapidly evolving technological landscape, artificial intelligence (AI) has emerged as a pivotal force driving innovation and transformation within corporate financial management. By embedding AI into organisational processes, companies have fundamentally reshaped their financial decision-making frameworks. However, the exact mechanisms through which AI adoption shapes the allocation of financial assets are still not fully understood. This study examines how artificial intelligence (AI) technologies influence the allocation of financial assets within corporations, with a specific focus on the moderating influence of three dynamic organisational capabilities: absorptive capacity, innovation capability, and adaptability. Based on panel data collected from companies listed on the Tehran Stock Exchange between 2020 and 2024, AI adoption is measured through textual analysis of management commentary reports obtained from the Codal system. The dependent variable comprises a set of financial ratios, including the proportion of financial assets relative to a firm’s total assets. The analysis employs multiple regression models with interaction terms to test the proposed hypotheses. Findings indicate that the adoption of AI substantially enhances the effectiveness of distributing financial assets. Moreover, absorptive capacity and innovation capability strengthen the association between AI adoption and the allocation of financial assets within firms' performance, while adaptability shows no statistically significant moderating effect. These results highlight the importance of both technological infrastructure and internal capabilities for leveraging advanced technologies to their fullest potential. This research not only enriches the academic discourse with fresh empirical insights but also offers valuable implications for financial managers, capital market regulators, and policymakers engaged in organisational digital transformation strategies.

Keywords

Artificial Intelligence
Financial Asset Allocation
Dynamic Organisational Capabilities
Absorptive Capacity
Innovation
Adaptability
Tehran Stock Exchange
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Iranian Journal of Finance
Volume 9, Issue 3
2025
Pages 166-186

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