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Data quality and firm performance: empirical evidence from the Korean financial industry

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Abstract

Despite popular belief that timely and precise data are important and indispensable to good decisions and that good decisions are related to better firm performance, empirical research that examines the effect of data quality on firm performance is still scarce. How great an impact does data quality have on firm performance? This study empirically investigates the effect of firm-level data quality on firm performance in the Korean financial industry during 2008–2010. The results show that commercial banks have high-quality data, while credit unions have comparatively low-quality data. They also show that better data quality has a positive influence on sales, operating profit, and value added. Improving the level of data quality management maturity by one can increase firm performance by 33.7 % in sales, 64.4 % in operating profit, and 26.2 % in value added.

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Acknowledgments

This work was supported by a Grant from the Kyung Hee University in 2010 (KHU-20100847).

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Authors and Affiliations

  1. School of Management, Kyung Hee University, 26 Kyungheedaero, Dongdaemun-gu, Seoul, 130-701, South Korea

    Jun Yong Xiang & Jae Kyeong Kim

  2. Department of IT Management, Sun Moon University, 100, Kalsan-ri, Tangjeong-myeon, Asan-si, Chungcheongnam-do, 336-708, South Korea

    Sangho Lee

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  1. Jun Yong Xiang
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  2. Sangho Lee
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Correspondence to Jae Kyeong Kim.

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Xiang, J.Y., Lee, S. & Kim, J.K. Data quality and firm performance: empirical evidence from the Korean financial industry. Inf Technol Manag 14, 59–65 (2013). https://doi.org/10.1007/s10799-012-0145-6

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