ARTIFICIAL INTELLIGENCE (AI), BIG-DATA ANALYTICS, AND THE VALUE RELEVANCE OF ACCOUNTING INFORMATION

Value-relevance of accounting information studies are more often than not hinged on the idea that stakeholders adjust their actions and respond swiftly by changing the value of shares when they get pertinent information. The study investigates the relationship between artificial intelligence, big-data analytics and value-relevance of accounting information.  Questionnaire was the main instrument of data collection, which was administered to 188 respondents. Data obtained were analyzed using descriptive, diagnostic and inferential statistical techniques. The multiple regression results revealed that artificial intelligence and big-data analytic can lead to increase in value-relevance of accounting information; thus, artificial intelligence and big-data analytics could predict financial information.  The study contributes to knowledge in accounting and management in general by establishing that when artificial intelligence and big-data analytics are employed by firms, it could lead to increase in the value-relevance of accounting information.  On the basis of this, artificial intelligence and big-data analytics could allow appreciative, better and robust understanding of financial information and as a way of predicting financial information; hence artificial intelligence and big-data analytics usage should be encouraged.

JEL Classification: M41; M40

Acknowledgement: We wish to acknowledge the Tertiary Education Trust Fund (TETFUND) for the Research Grant given to the authors (Reference No. TETF/DR&D/UNI/ABRAKA/IBR/2021/VOL.I).