Next Article in Journal
Characterizing the Air Temperature Drop in Mediterranean Courtyards from Monitoring Campaigns
Previous Article in Journal
Enhancing Urban Development Quality Based on the Results of Appraising Efficient Performance of Investors—A Case Study in Vietnam
Article Menu
Issue 8 (August) cover image

Export Article

Open AccessArticle
Sustainability 2017, 9(8), 1406; doi:10.3390/su9081406

Are Commercial Financial Databases Reliable? New Evidence from Korea

1
Graduate School of International Studies, Dong-A University, Busan 49236, Korea
2
Rutgers Business School, Rutgers, The Staute University of New Jersey, Newark, NJ 07102-3122, USA
3
College of Business, California State University, Chico, 95929 CA, USA
*
Author to whom correspondence should be addressed.
Received: 15 July 2017 / Revised: 1 August 2017 / Accepted: 4 August 2017 / Published: 9 August 2017
View Full-Text   |   Download PDF [256 KB, uploaded 10 August 2017]

Abstract

The quality of financial information is crucial for the effective decision-making of practitioners and academics. A number of studies have shown the existence of errors in proprietary databases provided by financial data aggregators (e.g., Compustat and Value Line) in advanced markets like the U.S. However, no study has examined the quality of the financial data offered by aggregators in emerging markets. Research on such markets is needed as financial investment frequently occurs in emerging markets due to the globalization of capital. The purpose of this study is to fill this gap by investigating whether financial data provided by aggregators is the same as the data reported in firms’ financial statements in emerging markets. Another purpose of this study is to examine the impact on academic research. Comparing the 18 most widely-used financial items found in the original filings of firms with the corresponding data provided by all three data aggregators currently available in South Korea (i.e., DataGuide, KisValue, and TS2000), we found a considerable number of differences; many of the differences are substantially greater than conventional materiality. We also found that the differences between data sources lead to different prediction results in bankruptcy prediction model. View Full-Text
Keywords: Keyword: data quality; absolute difference; material difference; financial information aggregator; Ohlson’s bankruptcy prediction model Keyword: data quality; absolute difference; material difference; financial information aggregator; Ohlson’s bankruptcy prediction model
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

Scifeed alert for new publications

Never miss any articles matching your research from any publisher
  • Get alerts for new papers matching your research
  • Find out the new papers from selected authors
  • Updated daily for 49'000+ journals and 6000+ publishers
  • Define your Scifeed now

SciFeed Share & Cite This Article

MDPI and ACS Style

Nam, H.; No, W.G.; Lee, Y. Are Commercial Financial Databases Reliable? New Evidence from Korea. Sustainability 2017, 9, 1406.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top