Market reactions to Big Data Implementation Announcements

Big data implementation recently becomes a popular interest, bringing the tremendous impact on the inside and outside of enterprises. To understand the interior efficiency, some indicators, such as cost or revenue, can be adopted to certainly provide references for managers. Evaluating the exterior effectiveness, however, is a challenging work because managers are not effortless to acquire the perspective of investors on the investment of big data implementation. Hence, this study conducted an event study method, which has been used in the financial, accounting, and management fields, to assess the effect on the news coverage about big data implementation. This is the first study to examine the impact of big data implementation announcements on the market value of firms and investigate the contextual factors in the abnormal returns.

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