Media tone and capital market information distortion: Evidence from corporate AI washing

This study examines the association between media tone and corporate artificial intelligence (AI) washing. Using 31,785 Chinese listed firm–year observations from 2017 to 2024, we find more negative media tone to be positively associated with AI washing. Mechanism tests reveal two concurrent pathways—a cognitive channel (managerial myopia) and a behavioral channel (annual report tone manipulation). The correlation is stronger for high-technology industries and non-state-owned enterprises. Our findings challenge the traditional “watchdog” view of the press by demonstrating that negative media tone is associated with symbolic compliance rather than substantive technological progress. By identifying media tone as a driver of AI-related disclosure distortion, this study contributes to the finance literature on information intermediaries, capital market efficiency, and the real effects of media on corporate disclosure policies.