Big data application and corporate investment decisions: Evidence from A-share listed companies in China

Li Wang, Yuhan Wu, Zeyu Huang and Yanan Wang

International Review of Financial Analysis, 2024, vol. 94, issue C

Abstract: Based on a natural language processing (NLP) method and annual reports from A-share listed companies in China from 2011 to 2020, this paper constructs a big data index for the corporate level and studies the impact of big data on corporate investment decisions. The study finds that big data significantly improves corporate investment decisions. From the perspective of index decomposition, data mining and mobile service are found to significantly improve corporate investment efficiency, while algorithm development and intelligent manufacturing mainly enhance the corporate investment level. The study also notes that heterogeneity may exist due to differences in financial, innovation, and legal environments. In terms of mechanisms, big data can positively influence corporate investment decisions by improving R&D investment and reducing transaction costs.

Keywords: Big data application; Corporate investment decisions; R&D investment; Transaction costs (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:94:y:2024:i:c:s1057521924002631

DOI: 10.1016/j.irfa.2024.103331

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