Big data reporting: a driver of financial stability?
Purpose
The disclosure of big data has been recognized as a crucial factor in shaping the accounting practices of modern corporations. Nevertheless, the factors influencing the disclosure of technological advancement remain unclear, necessitating further investigation. Hence, the main objective of this study is to clarify the relationship between firms' characteristics, including performance, size and leverage, and the disclosure of big data adoption.
Design/methodology/approach
The study sample consisted of financial companies listed on Muscat Stock Exchange for the period between 2014 and 2023. Multiple regression analyses were applied to analyze the study data.
Findings
The findings underscore the significant impact of big data disclosure on companies' financial position. A significant and positive correlation was found between big data disclosure and firms' profitability. In addition, a negative correlation was identified between big data disclosure and the firm's leverage. Finally, a positive relationship was identified between big data disclosure and the size of firms.
Originality/value
This study enhances the understanding of digital transformation within the accounting sector, and it aids stakeholders, including shareholders and regulatory bodies, in understanding what influences firms' to disclose more about big data adoption. Furthermore, the research findings can aid regulators in formulating guidelines for the disclosure of big data utilization.
