Big data analytics and management forecasting behavior
This paper investigates whether the use of Big Data analytics by firms has a spillover effect on management forecasting behavior. Insights provided by Big Data could potentially improve firms’ ability to forecast earnings (supply channel) and investor demand for earnings information is likely higher...
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sg-smu-ink.soa_research-30432023-09-26T09:46:27Z Big data analytics and management forecasting behavior GOH, Beng Wee LI, Na RANASINGHE, Tharindra This paper investigates whether the use of Big Data analytics by firms has a spillover effect on management forecasting behavior. Insights provided by Big Data could potentially improve firms’ ability to forecast earnings (supply channel) and investor demand for earnings information is likely higher for firms engaging in data analytics (demand channel). Using a text-based measure of firms’ commitments to and usage of Big Data analytics, we find that Big Data analytics usage is positively associated with the propensity to issue management earnings forecasts. Consistent with the “supply channel” explanation, we find that Big Data analytics usage is positively associated with management forecast accuracy as well. Also, supporting the “demand channel” explanation, we find that Big Data analytics usage is associated with greater analyst following. Our findings of improved disclosure following commitments to Big Data analytics highlight a potentially unintended benefit of the Big Data revolution. 2023-09-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/soa_research/2016 info:doi/10.2308/HORIZONS-2020-145 https://ink.library.smu.edu.sg/context/soa_research/article/3043/viewcontent/horizons_2020_145_pv.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Accountancy eng Institutional Knowledge at Singapore Management University Big data data analytics management forecasts voluntary disclosure Accounting Corporate Finance |
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Big data data analytics management forecasts voluntary disclosure Accounting Corporate Finance GOH, Beng Wee LI, Na RANASINGHE, Tharindra Big data analytics and management forecasting behavior |
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This paper investigates whether the use of Big Data analytics by firms has a spillover effect on management forecasting behavior. Insights provided by Big Data could potentially improve firms’ ability to forecast earnings (supply channel) and investor demand for earnings information is likely higher for firms engaging in data analytics (demand channel). Using a text-based measure of firms’ commitments to and usage of Big Data analytics, we find that Big Data analytics usage is positively associated with the propensity to issue management earnings forecasts. Consistent with the “supply channel” explanation, we find that Big Data analytics usage is positively associated with management forecast accuracy as well. Also, supporting the “demand channel” explanation, we find that Big Data analytics usage is associated with greater analyst following. Our findings of improved disclosure following commitments to Big Data analytics highlight a potentially unintended benefit of the Big Data revolution. |
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GOH, Beng Wee LI, Na RANASINGHE, Tharindra |
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GOH, Beng Wee LI, Na RANASINGHE, Tharindra |
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GOH, Beng Wee |
title |
Big data analytics and management forecasting behavior |
title_short |
Big data analytics and management forecasting behavior |
title_full |
Big data analytics and management forecasting behavior |
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Big data analytics and management forecasting behavior |
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Big data analytics and management forecasting behavior |
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big data analytics and management forecasting behavior |
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Institutional Knowledge at Singapore Management University |
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2023 |
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https://ink.library.smu.edu.sg/soa_research/2016 https://ink.library.smu.edu.sg/context/soa_research/article/3043/viewcontent/horizons_2020_145_pv.pdf |
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