Author

  • Mohd Hafiz Hashim

    • Faculty of Accountancy, UiTM Cawangan Kedah, Kampus Sungai Petani, Merbok, Kedah Darul Aman, Malaysia
    • Malaysia

  • Noora’in Omar

    • Faculty of Accountancy, UiTM Cawangan Kedah, Kampus Sungai Petani, Merbok, Kedah Darul Aman, Malaysia
    • Malaysia

  • Muhammad Hariz Hamid

    • Faculty of Accountancy, UiTM Cawangan Kedah, Kampus Sungai Petani, Merbok, Kedah Darul Aman, Malaysia
    • Malaysia

  • Mazlifa Md Daud

    • Faculty of Accountancy, UiTM Cawangan Kedah, Kampus Sungai Petani, Merbok, Kedah Darul Aman, Malaysia
    • Malaysia

  • Mohd Faizal Jamaludin

    • Faculty of Accountancy, UiTM Cawangan Kedah, Kampus Sungai Petani, Merbok, Kedah Darul Aman, Malaysia
    • Accounting Research Institute, Universiti Teknologi MARA, Shah Alam, Selangor, Malaysia
    • Malaysia

Abstract

Financial reports have traditionally relied on historical data, but this approach is increasingly inadequate in today’s fast-moving and data-rich financial environment. While prior studies have examined individual types of alternative data, such as social media sentiment or web traffic, there has been a limited comprehensive evaluation of how these heterogeneous sources can be integrated with conventional reporting frameworks to enhance financial reporting quality (FRQ). This study, therefore, investigates the role and potential of alternative data, for example, social media sentiment, satellite imagery, geolocation traces, and ESG-related indicators, in addressing the limitations of conventional measures that are often slow, periodic, and unable to capture real-time market dynamics. A narrative review of the literature suggests that alternative data can improve forecasting accuracy, strengthen risk management, and enhance corporate governance; in particular, prior studies document gains in the predictive accuracy of earnings forecasts and a more granular understanding of market behaviour. At the same time, there are significant challenges related to data quality, ethical and lawful use, and the fragmented legal and regulatory environment for alternative data, especially in developing economies. Synthesising these insights, the paper develops a conceptual framework in which alternative data affect FRQ both directly and indirectly via information timeliness, with analytics capabilities acting as a boundary condition that shapes the magnitude of these effects. The study concludes that realising the potential of alternative data will require clearer regulatory guidance, robust data-governance practices, and cross-disciplinary collaboration so that these new data sources can be integrated responsibly with existing reporting systems and used to support more transparent and accountable financial decision-making.

Keywords

References

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How to Cite

Hashim, M. H., Omar, N., Hamid, M. H., Md Daud, M., & Jamaludin, M. F. (2025). Enhancing Financial Reporting Quality: The Association between Alternative Data, Information Timeliness and Analytics Capabilities. Information Management and Business Review, 17(4(I), 66-79. https://doi.org/10.22610/imbr.v17i4(I).4717

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Copyright (c) 2025 Mohd Hafiz Hashim, Noora’in Omar, Muhammad Hariz Hamid, Mazlifa Md Daud, Mohd Faizal Jamaludin (Author)

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Research Paper

Published in

Vol. 17 No. 4(I) (2025) Circular Economy, Civic Technology & Social Innovation View issue contents

Published

2025-11-23

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