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Data assets, information uses, and operational efficiency

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  • Changyu Hu
  • Yuetong Li
  • Xiaojia Zheng

Abstract

This paper studies the impact of data assets on firms’ operational efficiency, aiming to show how data assets work in business operations and highlight their key value. Given the rich content, data assets can increase operational efficiency as it embeds firms with valuable information used to optimize resource deployment in production and improve customer relationship management. Using a sample of A-share listed firms in China from 2003 to 2019, we empirically show a consistent and significantly positive relationship between a text-based measure of data assets and operational efficiency. Moreover, the positive effect of data assets on operational efficiency is more pronounced in state-owned enterprises (SOEs), diversified firms with redundant internal information, and firms in a more complex external information environment (i.e. more volatile earnings of the industry or a larger dispersion of analysts’ forecasts). As further evidenced by higher turnover ratios of inventory and lower turnover ratios of accounts receivables in firms with data assets, we verify that data assets lead to efficient production management and flexible customer relationship management. Overall, these results suggest that data assets are valuable in the efficiency improvement of firms by facilitating information uses.

Suggested Citation

  • Changyu Hu & Yuetong Li & Xiaojia Zheng, 2022. "Data assets, information uses, and operational efficiency," Applied Economics, Taylor & Francis Journals, vol. 54(60), pages 6887-6900, December.
    • Handle: RePEc:taf:applec:v:54:y:2022:i:60:p:6887-6900
    DOI: 10.1080/00036846.2022.2084021
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    Cited by:

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    3. Kaiyuan Yang & Yuning Luo & Qiao Zou & Alfredo Jimenez, 2026. "Does data assetization enhance corporate innovation performance? A quasi-natural experiment based on the integration of informatization and industrialization in China," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 53(1), pages 253-283, February.
    4. Ji, Ruibing & Zhang, Shengling & Cao, Wenxuan & Hao, Yu & Wang, Nuo, 2025. "Data assets, supply chain spillovers, and corporate ESG development — Evidence from Chinese listed companies," Structural Change and Economic Dynamics, Elsevier, vol. 75(C), pages 880-894.
    5. Shan, Zidan & Wang, Yaqi, 2025. "Bilateral data asset matching in digital innovation ecosystems: A regret theory approach," Finance Research Letters, Elsevier, vol. 72(C).
    6. Zhang, Qianxiao & Duan, Yixue, 2024. "Digital empowerment and export quality: The moderate effect of market segmentation," Finance Research Letters, Elsevier, vol. 63(C).
    7. Caiqing Liang & Mohd Rusli Yacob & Siong Hook Law & Irina Harun, 2024. "Effects of Digital Transformation and Green Technology Innovation on Manufacturing’s Financial Performance: Evidence from China," Advances in Decision Sciences, Asia University, Taiwan, vol. 28(4), pages 92-119.
    8. Lili Chen, 2024. "Data assetization and capital market information efficiency: evidence from Hidden Champion SMEs in China," Future Business Journal, Springer, vol. 10(1), pages 1-23, December.
    9. Kokina, Julia & Blanchette, Shay & Davenport, Thomas H. & Pachamanova, Dessislava, 2025. "Challenges and opportunities for artificial intelligence in auditing: Evidence from the field," International Journal of Accounting Information Systems, Elsevier, vol. 56(C).
    10. Feng, Yongjie & Zhang, Zenglian & Zhang, Jingxian & Zhou, Wenjie, 2025. "More authentic data asset disclosure by myopic managers: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 105(C).
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    12. Yang, Shaoyu & Lu, Yang, 2025. "Government subsidies, data assets, and firm outward foreign direct investment," Finance Research Letters, Elsevier, vol. 85(PE).
    13. Ge, Shilong & Tu, Zhenyu & Chen, Yalin & Chong, Heap-Yih, 2025. "Data driven-sustainability: The impact of data trading platforms on corporate ESG performance," International Review of Financial Analysis, Elsevier, vol. 105(C).
    14. Xiao, Shengpeng & Wu, Kedong & Xiao, Xiao & Lin, Changqing, 2025. "How do data assets affect firm investment?," International Review of Financial Analysis, Elsevier, vol. 106(C).
    15. Wang, Yu & Dong, Fan, 2025. "How intellectual property protection enhances data capitalization: The mediating effects of resources and willingness to capitalize on data," International Review of Financial Analysis, Elsevier, vol. 107(C).
    16. Ahmed, Faroque & Gurdgiev, Constantin & Sohag, Kazi & Islam, Md. Monirul & Zeqiraj, Veton, 2024. "Global, local, or glocal? Unravelling the interplay of geopolitical risks and financial stress," Journal of Multinational Financial Management, Elsevier, vol. 75(C).
    17. Sha, Feiyun & Meng, Jiawei & Zheng, Xiaoyu & Jiang, Yaqi, 2025. "Sustainability under fire: How China-US tensions impact corporate ESG performance?," Finance Research Letters, Elsevier, vol. 85(PA).
    18. Fan, Liwei & Sun, Yuan & Wu, Tung-Ju, 2025. "Is climate policy uncertainty an angel or a devil? Empirical evidence from corporate digital transformation," International Review of Financial Analysis, Elsevier, vol. 103(C).
    19. Norazlinda Hj Mohammad & Norena Abd Karim Zamri & Mastura Roni & Siti Nur Izyandiyana Ab Hadi & Siti Fairuz Nurr Sadikan & Sulaiman Mahzan, 2025. "Navigating AI Ethics in Malaysian Universities: Addressing Privacy, Integrity, and Bias," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(1), pages 2451-2465, January.
    20. Wei, Yanlin & Zhang, Junrui & Cheng, Maoyong & Liu, Tingting, 2025. "Does data asset disclosure contribute to the market efficiency? Evidence from China," Research in International Business and Finance, Elsevier, vol. 73(PA).
    21. Qian, Kun & Pan, Chenxi & Liang, Xinyv, 2025. "Does data asset disclosure affect bank lending acquisition?," International Review of Financial Analysis, Elsevier, vol. 97(C).
    22. Wang, Xiaofan & Yao, Lili, 2025. "Data asset disclosures tilt audit tone: evidence from china's A-share market," International Review of Financial Analysis, Elsevier, vol. 107(C).
    23. Li, Yuetong & Wang, Xinyi & Zheng, Xiaojia, 2024. "Data assets and corporate sustainable development: evidence from ESG in China," Pacific-Basin Finance Journal, Elsevier, vol. 85(C).
    24. Luo, Shen, 2025. "The impact of data asset information disclosure on bank credit," Finance Research Letters, Elsevier, vol. 85(PE).
    25. Wang, AnChao & Saqib, Abdul, 2025. "How entrepreneurship drives ESG performance: The roles of data assetization and financing constraints," Finance Research Letters, Elsevier, vol. 82(C).

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