Скачать или смотреть Data Analytics Strategy for Internal Information Quality, Operating, Financial Reporting Decisions

I examine the determinants and consequences of adopting a data analytics strategy. Using firm
disclosures to identify such strategies, I find that large firms and growing firms are more likely
to employ them. The technology experience of the firm’s leadership and the firm’s operating
environment are also important determinants. The results suggest that a data analytics strategy
improves internal information quality, as evidenced by a positive association with operating
efficiency and, to a lesser extent, financial reporting quality. Analyses of hiring data suggest that
firm leadership signal commitment to a data analytics strategy with disclosure, and that their
buy-in correlates with higher benefits from the technology. I cannot, however, rule out the
possibility that firms that disclose their data analytics use do so strategically. The results are
robust to a battery of alternative specifications. The findings contribute to the existing literature
by documenting the benefits of data analytics for a broad sample of firms. The findings also
demonstrate that on average, the disclosure of technology topics is associated with true technolog
ical involvement. Lastly, the objectives of a data analytics strategy and the difficulties associated
with its implementation likely extend to newer forms of analytics, such as artificial intelligence.
Future research could examine the long-term effects of these more sophisticated technologies