Evaluating the impact of Big Data on Financial Reporting Quality in Pakistan’s Banking Sector
Abstract
Realizing that financial reporting information is valuable for stakeholders, including lenders, investors, and regulators in decision-making. In this case the study aims to evaluate the impact of big data on financial reporting quality of banks in Pakistan. The empirical analysis focuses on big data’s three dimensions, namely volume, velocity, and variety, on financial reporting quality dimensions: relevance, faithful representation, understandability and comparability. The study employs a cross-sectional research design. The data were collected from 240 employees from banks operating in Pakistan. So that we can obtain their perception on the effects of big data attributes that include volume, velocity and variety on financial reporting quality. Structural equation modelling (SEM) to analyse data in turn, the analysis confirmed that all the three attributes of big data: volume, velocity and variety have positive and significant impact on financial reporting quality. Therefore, the banking institutions in Pakistan need to incorporate big data analytics in their financial reporting for the factual, eliminating information lopsidedness, and for better decisions.
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