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Unleashing the wordsmith: Analysing the stock market reactions to the launch of ChatGPT in the US Education sector

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  • Wahyono, Budi
  • Rapih, Subroto
  • Boungou, Whelsy

Abstract

Is the stock market reacting to the launch of ChatGPT? This study examines the reaction of US education firms to the introduction of ChatGPT, an advanced language model. Our event study methodology reveals a significantly negative investor reaction to the launch of ChatGPT in US education stocks. Furthermore, we observe that responses were more pronounced for education and training services companies (traditional) than for professional and technology services companies (technology-based). In so doing, this article sheds new light on the responses of the stock market to the launch of ChatGPT.

Suggested Citation

  • Wahyono, Budi & Rapih, Subroto & Boungou, Whelsy, 2023. "Unleashing the wordsmith: Analysing the stock market reactions to the launch of ChatGPT in the US Education sector," Finance Research Letters, Elsevier, vol. 58(PC).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pc:s1544612323009480
    DOI: 10.1016/j.frl.2023.104576
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    References listed on IDEAS

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    Cited by:

    1. Lian, Ying & Tang, Huiting & Xiang, Mengting & Dong, Xuefan, 2024. "Public attitudes and sentiments toward ChatGPT in China: A text mining analysis based on social media," Technology in Society, Elsevier, vol. 76(C).
    2. Beckmann, Lars & Hark, Paul F., 2024. "ChatGPT and the banking business: Insights from the US stock market on potential implications for banks," Finance Research Letters, Elsevier, vol. 63(C).

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    More about this item

    Keywords

    ChatGPT; Education stocks; Artificial intelligence; Stock market;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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