- Apply for Authority
- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS
ISSN : 1738-3110
The Impact of Big Data Investment on Firm Value
Bae, Jung-Ho
- Downloaded
- Viewed
Abstract
Purpose - The purpose of this research is to provide insights that can be used for deliberate decision making around challenging big data investments by measuring the economic value of such big data implementations. Research design, data, and methodology - We perform empirical research through an event study. To this end, we measure actual abnormal returns of companies that are triggered by their investment announcements in big data, or firm size information, during the three-year research period. The research period targets a timeframe after the introduction of big data at Korean firms listed on the Korea stock markets. Results - Our empirical findings discover that on the event day and the day after, the abnormal returns are significantly positive. In addition, our further examination of firm size impacts on the abnormal returns does not show any evidence of an effect. Conclusions - Our research suggests that an event study can be useful as an alternative means to measure the return on investment (ROI) for big data in order to lessen the difficulties or decision making around big data investments.
- keywords
- Big Data, Event Study, Return on Investment (ROI)
Reference
Agrawal, Jagdish, & and Kamakura, Wagner (1995). The Economic Worth of Celebrity Endorsers: An Event Study Analysis. Journal of Marketing, 59(3), 56-62.
Aksoy, Lerzan, Cooil, Bruce, Groening, Christopher, Keiningham, Timothy L., & Yalcin, Atakan (2008). The Long-Term Stock Market Valuation of Customer Satisfaction. Journal of Marketing, 72(July), 105-122.
Allenby, Greg (2012). Keynote Speech at the Fall 2012 KMA Conference : Big Data 2.0. Asia Marketing Journal, 14(3), 1-5.
Anderson, Eugene W., Fornell, Claes, & Mazvancheryl, Sanal K. (2004). Customer satisfaction and shareholder value. Journal of Marketing, 68(4) 172-85.
An, Kwangho, Lim, Byoung-Hun, & Kim, Young-Gi (2003). The Empirical Study of the effect of Sports Sponsorship Marketing on the Value of Firm. Korean Management Review, 32(4), 1089-1102.
Bond, Stephen R., & Cummins, Jason G. (2000). The Stock Market and Investment in the New Economy: Some Tangible Facts and Intangible Fictions. Brookings Papers on Economic Activity, 1, 61-124.
Brown, Stephen J., & Warner, Jerold B. (1985). Using daily stock returns: The case of event studies. Journal of financial economics, 14(1), 3-31.
Chaney, Paul K., Devinney, Timothy M., & Winer, Russell S. (1991). The Impact of New Product Introductions on the Market Value of Firms. Journal of Business, 65(5), 320-335.
Daniel, Kent, & Titman, Sheridan (2006). Market Reactions to Tangible and Intangible Information. The Journal of Finance, 61(4), 1605-1643.
Donnelly, Christina, Simmons, Geoff, Armstrong, Gillian, & Fearne, Andrew (2013). Digital loyalty card ‘big data’and small business marketing: Formal versus informal or complementary? International Small Business Journal, Retrieved Oct. 1, 2013. from doi: 10.1177/0266242613502691: 0266242613502691.
Fama, Eugene F., Fisher, Lawrence, Jensen, Michael C., & Roll, Richard (1969). The Adjustment of Stock Prices to New Information. International Economic Review, 10(1), 1-21.
Fornell, Claes, Mithas, Sunil, Morgeson III, Forrest V., & Krishnan, M.S. (2006). Customer satisfaction and stock prices: High returns, low risk. Journal of Marketing, 70(1)3-14.
George, Gerard, Haas, Martine R., & Alex Pentland (2014). From the Editors: Big Data and Management. Academy of Management Journal, 57(2), 321-26.
Gruca, Thomas S., & Rego, Lopo L. (2005). Customer satisfaction, cash flow, and shareholder value. Journal of Marketing, 69(3) 115-130.
Horsky, Dan, & Swyngedouw, Patrick (1987). Does it Pay to change your Company’s name? A Stock market Perspective. Marketing Science, 6(4), 320-335.
Jacobson, Robert, & Mizik, Natalie (2009). The financial markets and customer satisfaction: reexamining possible financial market mispricing of customer satisfaction. Marketing Science, 28(5) 810-9.
Kim, Byungdo, Kim, JiKyung, & Woo, Sangjin (2004). CRM Investment and the Value of the Firm. Korean Management Review, 33(4), 1185-99.
Kim, Gi-pyong (2010). A study on the CRM strategy for medium and small industry of distribution. Journal of Distribution Science, 8(3), 37-47
Lane, Vicki, & Jacobson, Robert (1995). Stock Market Reactions to Brand Extension Announcements: The Effect of Brand Attitude and Familiarity. Journal of Marketing, 59(1), 63-77.
Luo, Xueming (2007). Consumer Negative Voices and Firm Idiosyncratic Stock Returns. Journal of Marketing, 71(July), 75-88.
Lohr, Steve (2014). Making Big Data Think Bigger. The New York Times, Retrieved Feb 1, 2015, from http://bits.blogs.nytimes.com/2014/09/20/making-big-data-think-bigger/
Marketing Science Institute (2013). Call for Papers-Marketing Science Special Issue on Big Data: Integrating Marketing, Statistics, and Computer Science. Marketing Science, 32(4), 678.http://dx.doi.org/10.1287/mksc.2013.0794
McAfee, Andrew, & Brynjolfsson, Erik (2012). Big Data. management revolution. Harvard Business Review, 90(10), 61-67.
Ross, Jeanne W., Beath. Cynthia M., & Quaadgras, Anne (2013). You May Not Need Big Data After All. Harvard Business Review, 91(12), 90-98.
Tirunillai, Seshadri, & Tellis, Gerard J. (2014). Mining Marketing Meaning from Online Chatter: Strategic Brand Analysis of Big Data Using Latent Dirichlet Allocation. Journal of Marketing Research, 51(4) 463-79.
Tobin, James (1969). A general equilibrium approach to monetary theory. Journal of money, credit and banking, 1(1), 15-29.
Webster Jr, Frederick E. (1981). Top Management's Concerns about Marketing: Issues for the 1980's. Journal of Marketing, 45(3). 9-16.
Yi, Youjae, & Lee, Cheonglim (2006). The Effects of Customer Satisfaction on Firm’s Profitability and Value. Journal of Korean Marketing Association, 21(2), 85-113.
Zhang, Jianhui, and Zhu, Junxuan (2014). Research Intelligent Precision Marketing of E-commerce Based on the Big Data. Journal of Management and Strategy 5(1) 33-38.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations