AHFE Open AccessHybrid Human–AI Interaction in Game-Theoretic Corporate Governance: Matching ESG Targets with Overarching Sustainable Development Goals
Abstract
Corporate governance may admit multiple Nash equilibria. I develop a game-theoretic framework in which AI functions as an equilibrium selector by reducing information frictions, synchronizing beliefs, and expanding the basin of attraction for high‑ESG outcomes. Using 450 firms (2014–2024), I estimate that governance-directed AI adoption lifts ESG by 8–15% and is associated with lower implied cost of equity, higher Tobin’s Q, greater investment, and tighter credit spreads. Mechanism tests show improved disclosure (+8.24), tighter target discipline, and dampened strategic complementarities, with stronger effects in network‑central firms and high‑complementarity industries. Effects grow over time and are most pronounced where disclosure is complex. The results link governance technology to financing conditions and firm value.
Keywords: Nash equilibria, AI governance, ESG performance, Bayesian forecasts, Multilayer networks, Sustainable governance
DOI: 10.54941/ahfe1007083
Cite this paper
More from this volume
- Artificial Intelligence Maturity Model (AIMM)
- An Experimental Study on Consensus Building with an AI Chatbot Across Two Topics
- An Agent-Based Simulation Framework for ADHD: Modeling Attention Regulation and Adaptive Therapeutic Interventions
- CRMSON: Co-Designing Adaptive and Ethical AI Systems to Address Mental Health Barriers in Aviation
- Usability Evaluation of FAIR Data Planning in the Data Stewardship Wizard
- Seeing the Invisible Load: XR + Multimodal Sensing for Cognitive Ergonomics in Industrial Training
- Conceptual Framework for Designing Domain-Specific LLM-Based Information Systems
- Shaping Conversations: Custom GPTs to Spark Reflection in Design
- Privacy at the Core: Toward Automated Detection of Privacy-Sensitive Content in an LLM-Based Care Documentation Support System
- Dynamic Difficulty Adjustment via Dynamic Scripting: An Empirical Study of Player Flow in a Brawler Game
- Sinusoidal time-based features and human error metrics: Advancing software defect prediction in safety-critical systems
- Designing an Experimental Method for Evaluating Divergent Thinking with a Color Queue under Time Constraints