{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,8,14]],"date-time":"2026-08-14T15:35:36Z","timestamp":1786721736458,"version":"build-2736575974"},"posted":{"date-parts":[[2026]]},"group-title":"SSRN","reference-count":0,"publisher":"Elsevier BV","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"abstract":"<jats:p>I examine whether firm-level AI exposure relates to equity market liquidity before and after the diffusion of generative AI (GenAI). Using a difference-indifferences design across 394 S&amp;amp;P 500 firms, I compare two non-overlapping windows: 2019 (pre-GenAI) and 2024-2025 (post-GenAI). AI exposure is measured via the Felten-Raj-Seamans occupational AI exposure score mapped to firm sectors. I find that high-AI-exposure firms experienced a statistically significant widening of bid-ask spreads (\u03b2 = 0.00090, p = 0.025) and an increase in zero-return days (\u03b2 = 0.00616, p = 0.008) relative to low-exposure firms after GenAI diffusion. These patterns are absent in the pre-period alone, consistent with the spread widening reflecting post-GenAI information asymmetry rather than a pre-existing cross-sectional difference. The results suggest that GenAI diffusion introduces adverse-selection costs into the equity markets of exposed firms.<\/jats:p>","DOI":"10.2139\/ssrn.6626280","type":"posted-content","created":{"date-parts":[[2026,4,24]],"date-time":"2026-04-24T13:39:03Z","timestamp":1777037943000},"source":"Crossref","is-referenced-by-count":0,"title":["AI Exposure and Equity Market Liquidity: Evidence from a Pre- and Post-GenAI Comparison"],"prefix":"10.2139","author":[{"ORCID":"https:\/\/orcid.org\/0009-0005-8477-9393","authenticated-orcid":true,"given":"Boon Chuan","family":"Lim","sequence":"first","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"78","container-title":[],"original-title":[],"deposited":{"date-parts":[[2026,8,14]],"date-time":"2026-08-14T15:02:09Z","timestamp":1786719729000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.ssrn.com\/abstract=6626280"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2026]]},"references-count":0,"URL":"https:\/\/doi.org\/10.2139\/ssrn.6626280","relation":{},"subject":[],"published":{"date-parts":[[2026]]},"subtype":"preprint"}}