TY - JOUR
T1 - Does implementation of big data analytics improve firms' market value? Investors' reaction in stock market
AU - Lee, Hansol
AU - Kweon, Eunkyung
AU - Kim, Minkyun
AU - Chai, Sangmi
N1 - Publisher Copyright:
© 2017 by the authors.
PY - 2017
Y1 - 2017
N2 - Recently, due to the development of social media, multimedia, and the Internet of Things(IoT), various types of data have increased. As the existing data analytics tools cannot cover thishuge volume of data, big data analytics becomes one of the emerging technologies for business today.Considering that big data analytics is an up-to-date term, in the present study, we investigated theimpact of implementing big data analytics in the short-term perspective. We used an event studymethodology to investigate the changes in stock price caused by announcements on big data analyticssolution investment. A total of 54 investment announcements of firms publicly traded in NASDAQand NYSE from 2010 to 2015 were collected. Our results empirically demonstrate that announcementof firms' investment on big data solution leads to positive stock market reactions. In addition, wealso found that investments on small vendors' solution with industry-oriented functions tend toresult in higher abnormal returns than those on big vendors' solution with general functions. Finally,our results also suggest that stock market investors highly evaluate big data analytics investments ofbig firms as compared to those of small firms.
AB - Recently, due to the development of social media, multimedia, and the Internet of Things(IoT), various types of data have increased. As the existing data analytics tools cannot cover thishuge volume of data, big data analytics becomes one of the emerging technologies for business today.Considering that big data analytics is an up-to-date term, in the present study, we investigated theimpact of implementing big data analytics in the short-term perspective. We used an event studymethodology to investigate the changes in stock price caused by announcements on big data analyticssolution investment. A total of 54 investment announcements of firms publicly traded in NASDAQand NYSE from 2010 to 2015 were collected. Our results empirically demonstrate that announcementof firms' investment on big data solution leads to positive stock market reactions. In addition, wealso found that investments on small vendors' solution with industry-oriented functions tend toresult in higher abnormal returns than those on big vendors' solution with general functions. Finally,our results also suggest that stock market investors highly evaluate big data analytics investments ofbig firms as compared to those of small firms.
KW - Big data
KW - Data analytics
KW - Event study methodology
KW - Measuring stock market value of investment
UR - http://www.scopus.com/inward/record.url?scp=85020689510&partnerID=8YFLogxK
U2 - 10.3390/su9060978
DO - 10.3390/su9060978
M3 - Article
AN - SCOPUS:85020689510
SN - 2071-1050
VL - 9
JO - Sustainability (Switzerland)
JF - Sustainability (Switzerland)
IS - 6
M1 - 978
ER -