In this paper, we attempt to understand the role media framing –tone and readability– plays on investors’ uncertainty and stock illiquidity after firm misconduct is announced by mainstream media. Focusing on S&P500-listed firms, we examine 915 misconduct articles retrieved from the Wall...

Large language models (LLMs) such as ChatGPT have garnered global attention recently, with a promise to disrupt and revolutionize business operations. As managers rely more on artificial intelligence (AI) technology, there is an urgent need to understand whether there are systematic biases in AI...