How big data features drive financial accounting and firm sustainability in the energy industry

Mohsen Ebied Abdelghafar Younis Azzam, Marwa Saber Hamoda Alsayed, Abdulaziz Alsultan and Ahmed Hassanein

Journal of Financial Reporting and Accounting, 2023, vol. 22, issue 1, 29-51

Abstract: Purpose - This study aims to scrutinize the relationship between the perception of big data (BD) features and the primary outcomes of financial accounting. Likewise, it explores whether financial accounting practices moderate the relationship between BD features and firm sustainability. Design/methodology/approach - The study used a questionnaire survey based on the Likert scale for two distinct groups of participants: academic scholars and industry practitioners operating in the BD era within the energy sector. Findings - The results reveal significant positive associations between BD features and firm performance, reporting quality, earnings determinants, fair value measurements, risk management, firm value, the efficiency of the decision-making process, narrative disclosure and firm sustainability. Besides, the path analysis indicates an indirect impact of BD on firm sustainability via financial accounting practices. The results suggest that energy firms should consider incorporating BD analysis into their financial accounting processes to improve their sustainability performance and create long-term value for their stakeholders. Practical implications - The findings are particularly interesting to academics in accounting and business to improve the accounting curriculums to fit the technological revolution, especially in the field of BD analytics. Practitioners within energy industries must also refine their skills and knowledge to meet the challenges of BD in the foreseeable future. The results provide important implications for policy setters to revise current financial accounting standards to cope with technological innovation. Originality/value - The study makes a valuable contribution by critically examining the impact of BD on various financial accounting practices neglected in prior research. It highlights the transformative power of BD in the domain of financial accounting and provides insights into its potential implications for energy firms.

Keywords: Big data; Financial accounting practices; Firm sustainability; Path analysis; Moderator effect; M410 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfrapp:jfra-03-2023-0125

DOI: 10.1108/JFRA-03-2023-0125

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