Big Data Technology and Financial Performance of Listed Firms in Palestine: Mediating Role of Accounting Information Systems

Abstract

The purpose of this paper is to examine the mediating effect of the rate of quality of accounting information systems on the relationship between big data technology and firms’ financial performance in firms listed on the Palestine Stock Exchange. The researchers conducted an account of the previous studies in this field. The researcher used the deductive approach in studying and analyzing previous studies related to big data by relying on books, periodicals, theses, and accounting standards related to the subject of the research. The researcher applied an inductive approach when conducting the field study and testing the statistical hypotheses related to the study of the relationship between the use of big data technology and firms’ financial performance. The findings show a correlation coefficient of (0.54) and a coefficient of determination of (48%), indicating that big data analytics positively affects the rate of return on assets, and that there is a statistically significant relationship between the advancement of accounting information systems and the enhancement of financial performance in big data technology, as measured by the rate of return on equity and the rate of return on assets, which have correlation rates of (0.53) and (42%), respectively. This relationship is reflected in the data on the existence of a statistically significant relationship between the use of big data technology and the enhancement of financial performance with big data technology. The intention of big data, as well as the absence of fundamental differences between the sample individuals, states that the use of big data technology leads to improved performance through the development of various accounting practices and good inventory management by predicting customer behaviour, thus increasing the competitiveness of competition and improving the reputation of the establishment on social media. This is reflected in the company’s sales and its survival in the market, as well as the development of analytical models and advanced methods of analysis that limit fraud and help control it, which is one of the establishment’s goals at present. This paper contributes to the literature by showing that the use of big data leads to a change in methods of preparing the final accounts, especially the financial position, and displaying them at fair value, which increases investor confidence. The study offers insights into the necessity of holding training courses for accountants concerning technology related to digital transformation and big data analysis for use in developing accounting practices.