In recent years, we’ve seen some remarkable advances in digital technologies in cloud computing, data analytics, machine learning, and artificial intelligence, among others. These technologies have the potential to transform a wide range of businesses, especially in traditionally non-technology sectors.
Research: Investors Reward Companies That Talk Up Their Digital Initiatives
According to an analysis of annual reports.
June 18, 2019
Summary.
A study of how companies disclose their digital initiatives on earnings calls and written communications finds that more firms are using these technologies; that financial markets reward companies that disclose such initiatives; but that financial performance improvements are mixed. The results also show that markets tend to see execution risk in such initiatives, discounting whether management will be able to deliver on its promises when implementing technology.