Abstract
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 this huge 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 the impact of implementing big data analytics in the short-term perspective. We used an event study methodology to investigate the changes in stock price caused by announcements on big data analytics solution investment. A total of 54 investment announcements of firms publicly traded in NASDAQ and NYSE from 2010 to 2015 were collected. Our results empirically demonstrate that announcement of firms’ investment on big data solution leads to positive stock market reactions. In addition, we also found that investments on small vendors’ solution with industry-oriented functions tend to result 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 of big firms as compared to those of small firms.
Highlights
Due to the advent of social media, multimedia, and the Internet of Things, the total volume of data has tremendously increased [1]
We focused on listed firms in the national association of securities dealers’ automated quotations (NASDAQ) and New York stock exchange (NYSE)
We found that only firm size and vendors have a positive relationship with Cumulative Abnormal Returns (CAR)
Summary
Due to the advent of social media, multimedia, and the Internet of Things, the total volume of data has tremendously increased [1]. Data have extended their territory over all parts of industries [2] and are considered a key factor of establishing productive processes, alongside capital and labor. As unstructured data have increased, the existing data analytics tools cannot effectively cover those unstructured data. With these environmental changes, big data analytics becomes one of the emerging technologies for business today [3]. There are a number of companies hesitating to implement big data analytics solutions, because the utility of big data analytics implementation remains ambiguous
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