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Data element utilization and firm value

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  • Tang, Meihuan

Abstract

Contemporary business transformation has established data resources as critical drivers of organizational value creation, though the precise mechanisms governing this relation remain insufficiently explored in extant literature. This research investigates the complex pathways that connect data element utilization to firm value, specifically the mediating influence of absorptive capacity and the moderating role of environmental, social, and governance (ESG) disclosure practices. The study uses sophisticated econometric methodologies including fixed-effects regression frameworks, mediation analyses, and moderation assessments to analyze comprehensive panel data from 843 Chinese listed enterprises from 2010 to 2022. The empirical evidence shows that data utilization initiatives have a significant positive relation with firm value creation, which is substantially mediated by organizational absorptive capacity and positively moderated by ESG disclosure intensity. Notably, environmental and social disclosure dimensions show more pronounced moderating effects than governance components. Additional heterogeneity analyses reveal systematic differences in data utilization value creation potential across distinct ownership configurations and industry characteristics. The findings illuminate that effective data-driven value creation is critically dependent on organizational capabilities for knowledge assimilation and application and demonstrated commitment to sustainability practices. This research advances the theoretical understanding of data-driven value creation mechanisms while providing actionable insights for organizational leadership and policy architects in increasingly digitalized economic environments.

Suggested Citation

  • Tang, Meihuan, 2025. "Data element utilization and firm value," International Review of Financial Analysis, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:finana:v:102:y:2025:i:c:s1057521925000912
    DOI: 10.1016/j.irfa.2025.104004
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    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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