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  • June 18, 2019
  • Article
  • Harvard Business Review (website)

Research: Investors Reward Companies That Talk Up Their Digital Initiatives

By: Suraj Srinivasan and Wilbur Chen
  • Format:Electronic
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Abstract

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.

Keywords

Digital Technologies; Disclosure; Investment; Performance Improvement

Citation

Srinivasan, Suraj, and Wilbur Chen. "Research: Investors Reward Companies That Talk Up Their Digital Initiatives." Harvard Business Review (website) (June 18, 2019).

About The Author

Suraj Srinivasan

Accounting and Management
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