Information for Efficient Decision Making: Big Data, Blockchain and Relevance

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"Can there be reliable information that is also relevant to decision making? Information for Efficient Decision Making: Big Data, Blockchain and Relevance focuses on the consolidation of information to facilitate making decisions in firms, in order to make their operations efficient to reduce their costs and consequently, increase their profitability. The advent of blockchain has generated great interest as an alternative to centralized organizations, where the data is gathered through a centralized ledger keeping of activities of the firm. The decentralized ledger keeping is one of the main features of blockchain that has given rise to many issues of technology, development, implementation, privacy, acceptance, evaluation and so on. Blockchain concept is a follow-up to big data environment facilitated by enormous progress in computer hardware, storage capacities and technological prowess. This has resulted in the rapid acquiring of data not considered possible earlier. With shrewd modeling analytics andalgorithms, the applications have grown to significant levels. This handbook discusses the progress in data collection, pros and cons of collecting information on decentralized publicly available ledgers and several applications"-- Cover Title Copyright Preface About the Editor About the Contributors Table of Contents Chapter 1 A Brief Introduction to Blockchain Economics 1. Introduction 2. Blockchain as Decentralized Consensus 2.1. What is blockchain? 2.2. Benefits of decentralization 2.2.1. Preventing single point of failure 2.2.2. Reducing market power and enabling stakeholding 2.2.3. Enabling value exchange, asset traceability, and information interaction 3. Consensus Generation and Economic Tradeoffs 3.1. Games under consensus protocols 3.1.1. Proof-of-work protocol 3.1.2. Alternative protocols 3.2. Blockchain impossibility triangle? 3.2.1. Decentralization 3.2.2. Consensus (formation) 3.2.3. Scalability 4. Key Economic Issues 4.1. Network security 4.2. Overconcentration 4.3. Energy consumption and sustainability 4.4. Adoption 4.5. Multi-party computation and permissioned blockchains 4.6. Smart contracting 4.7. Information aggregation and distribution 5. Concluding Remarks and Future Directions Acknowledgments References Chapter 2 Data Fiduciary in Order to Alleviate Principal–Agent Problems in the Artificial Big Data Age 1. Introduction 2. Theory — Fiduciary Responsibility 3. Information Sharing and Privacy 3.1. The human preference for communication 3.2. Privacy as a human virtue 3.3. Privacy in the digital big data era 4. A Utility Theory of Information Sharing and Privacy 4.1. Expected utility and subjective probability in the digital big data era 4.2. Time preferences 4.3. Expected utility and subjective probability 5. Data Fiduciary in the Digital Big Data Age 5.1. People’s right to privacy and to be forgotten 5.2. People’s right to prevent misuse of information they share 5.3. People’s right to access to accurate information 5.4. People’s right to choose and fail 6. Conclusion and Future Prospects Acknowledgments Bibliography Chapter 3 Blockchain Technology Adoption Decisions: Developed vs. Developing Economies 1. Introduction 2. Blockchain Technology: Country-Level Issues 3. Blockchain Adoption through Time: Growth and Carrying Capacity Factors 4. Cost–Benefit Factors and Collective Actionin Blockcha in Adoption 5. Conclusion References Chapter 4 A Discussion on Decentralization in Financial Industry and Monetary System 1. Introduction 2. Decentralization and Finance Sector 2.1. The underserved market 2.2. Infrastructure or the marginal cost? 2.3. Implication of blockchain settlement 3. Monetary System Based on Cryptocurrency 3.1. Cryptocurrency 3.2. Long-run analysis 3.3. Short-run analysis 4. Conclusion and Remarks References Chapter 5 Raising Funds with Smart Contracts: New Opportunities and Challenges 1. Introduction 2. Digital Ledger Technologies and Smart(er) Financing Contracts 2.1. Verifiable records and financing contracts 2.2. Key features of digital ledgers based on hash-linked time stamping (blockchain) 2.3. Unresolved issues and debates 3. Crowdfunding and Experimentation 4. Conclusion References Chapter 6 The Blockchain Evolution and Revolution of Accounting 1. Introduction 2. Blockchain Technology 3. Cryptoassets 4. Initial Coin Offerings 5. Financial Reporting and Auditing 6. Integrated Supply Chains and Open-Book Accounting 7. Smart Contracts 8. Concluding Remarks: The Blockchain Evolution and Revolution of Accounting? References Chapter 7 What Accountants Need to know about Blockchain 1. Introduction 2. What is Blockchain? 3. From Blockchain to Bitcoin 4. Placing Blockchain in Its Business Context 5. The Role of Accountants and Auditorsin a Blockcha in-Based World 6. Conclusion References Chapter 8 Management Control and Information, Communication and Technologies: A Bidirectional Link — The Case of Granarolo 1. ICT in Business Management: A Brief Overview 2. Business Background 3. How to Manage Innovation: An Integrated Approach of Management Control System 3.1. The role of Granarolo’s MCS in managing the technological dimension of innovation 3.2. The role of Granarolo’s MCS in managing the organizational dimension of innovation 3.3. The role of Granarolo’s MCS in managing the cultural dimension of innovation 4. ICT Innovation Impacts on Business 4.1. Communication, coordination, and management decision support 4.2. Management accounting and control 4.3. A tool for strategy execution 4.4. Business performance 5. Discussion and Conclusions References Chapter 9 A Brave New World: The Use of Non-traditional Information in Capital Markets 1. Introduction 2. Changes to Capital Markets 2.1. Emergence of the Internet 2.2. The EDGAR database 2.3. Regulation FD 2.4. The global analyst research settlement 3. New Sources of Information 3.1. Peer-to-peer sharing of information in the pre-social media era 3.2. The impact of social media on capital markets 3.3. The use of social media by firms 3.4. Rise of peer-to-pear research — Seeking Alpha and estimize 3.5. The impact of emerging technologies: Big data and blockchain 4. Implications 4.1. Implications for firms 4.2. Implications for sell-side analysts 4.3. Implications for buy-side 4.4. Implications for retail investors 4.5. Implications for the accounting profession 4.6. Implications for the media 4.7. Implications for regulators 4.8. Implications for academic research 5. Concluding Thoughts References Chapter 10 Analyzing Textual Information at Scale 1. Introduction 2. Texts as Unstructured Data 2.1. News 2.2. Corporate filings and releases 3. Count-based or Manual-label Analyses in Economics and Finance 4. Statistical Inference and Regression Models 5. Machine Learning and NLP 6. A Textual-Factor Framework 6.1. Illustrations 6.2. Applications 7. Other Approaches and Promising Directions 7.1. Dynamic and customized count-based methods 7.2. Machine learning for economics 8. Concluding Remarks Acknowledgment References Chapter 11 Blockchain-Enabled Supply Chain Transparency, Supply Chain Structural Dynamics, and Sustainability of Complex Global Supply Chains — A Text Mining Analysis 1. Introduction 2. Blockchain for Supply Chain Management 2.1. Distributed ledger 2.2. Cryptography 2.3. Consensus 2.4. Smart contract 2.5. Supply chain structure, SC processes, and blockchain 3. Data and Methods 3.1. Data sample and preprocessing 3.2. Topic modeling 3.3. Model fitting 4. Results and Analysis 5. Discussion and Conclusion References Appendix A: Ten Most Probable Words for 50 Topics Appendix B: Data Sample of Text Document Chapter 12 Blockchain Solutions for Agency Problems in Corporate Governance 1. Introduction 2. Agency Problems in Corporate Governance 2.1. Remedial attempts 2.2. Path dependencies 3. Blockchain Solutions for Agency Problems in Corporate Governance 3.1. Blockchain guarantees 3.2. Removal of agents 3.3. Reforming governance hierarchies 3.4. Agency reform 4. Open Issues 5. Conclusion References Chapter 13 Economics of Cryptocurrencies: Artificial Intelligence, Blockchain, and Digital Currency 1. Introduction 2. Artificial Intelligence, Growth and Ecosystems 3. Artificial Intelligence and the Society 3.1. Application of AI in industry and the social sectors 4. Cryptocurrency/Digital Currency by Central Banks (Agarwal et al., 2018) 5. Economics of Currency (Money) 5.1. The quantitative theory of money 6. Money Supply 7. Virtual Community, Virtual Products and Virtual Currency: Emergence of Bitcoins as mode for Illicit (Hawala) Transactional 7.1. Cryptocurrency as a tenable asset class 7.2. Virtual products (like bitcoins, etc.) framework as virtual transactional system 7.2.1. Recent developments in bitcoins (crypto-product): Why, how, and for what 7.3. Digital money Bitcoin — The new Hawala 8. Conclusion Acknowledgments Note Bibliography Chapter 14 Developing Blockchain-Based Carbon Accounting and Decentralized Climate Change Management System 1. Introduction 2. What is Blockchain Technology? 3. Blockchain-enabled Carbon Accounting 3.1. Financial carbon accounting 3.2. Management carbon accounti 3.3. Carbon assurance and auditing 4. Applying Blockchain Technology to Global Climate Change Management Under the Paris Agreement 4.1. Kyoto protocol vs. Paris agreement 4.2. Using blockchain for global climate change management 5. Conclusion References Chapter 15 Usefulness of Corporate Carbon Information for Decision-Making 1. Introduction 2. Carbon Financial and Management Accounting 2.1. Carbon financial accounting 2.2. Carbon management accounting 3. Theories of Voluntary Carbon Disclosure 4. Determinants and Motivations of Voluntary Carbon Disclosure 5. The Quality and Adequateness of Voluntary Carbon Information 6. Does Voluntary Carbon Information Reflect Firms’ Underlying Performance? 7. Value Relevance of Carbon Information 7.1. The use of carbon information in the equity markets 7.2. The use of carbon information in the debt markets 8. CDP 9. Conclusion References Chapter 16 Motivating Innovation and Creativity: The Role of Management Controls 1. Introduction 2. Motivate Innovation with Formal Incentives 3. The Information Role of Management Controls 4. Setting Up Management Controls to Achieve Ambidexterity 5. Conclusion References Chapter 17 Board Governance and Information Quality 1. Introduction 2. Board Independence and Information Quality 3. Board Gender Diversity and Information Quality 4. Inter-director Communication, Board Ethnic Diversity and Information Quality 4.1. Inter-director communication 4.2. Board ethnic diversity, fault lines, communication, and information quality 5. Family Ownership, Board Governance, and Information Quality 6. Information Technology, Governance, and Information Quality 7. Limitations of Scope References Chapter 18 Evolving Standards of Fair Value and Acquisition Accounting 1. Introduction 2. How an Unprofitable Acquisition Increased Reported Profits 3. BPGs and Market Reaction during the Financial Crisis 4. Intangible Valuation and BPG’s after the Crisis 5. The Curious Case of Kentucky Power — SEC Accounting and Auditing Enforcement Release No. 3344, 2011 6. Conclusion References Chapter 19 Evolving Blockchain Applications: Multiple Semantic Models and Distributed Databases for Blockchain Data Reuse 1. Introduction 1.1. Multiple semantic models and distributed databases 1.2. Virtual organizations and blockchain-like applications 1.3. Organization of the chapter 2. Blockchain and Accounting and Supply Chain Systems 2.1. Different kinds of blockchains 2.2. Architecture of blockchains 2.3. Blockchain in accounting and supply chain systems 2.4. Blockchain in accounting and supply chain: IBM Maersk “blockchain” 2.5. On-blockchain vs. Off-blockchain 2.6. Blockchain benefits are more than what the blockchain provides 3. Databases and Distributed Systems 3.1. Architecture and design 3.2. BigchainDB 4. Collaboration and Virtual Organizations 4.1. Trust for virtual organizations 4.2. Accounting and resource information for virtual organizations 4.3. BigchainDB for virtual organizations 5. Design Science 6. Design of an Accounting System for Virtual Organizations 6.1. Identification and description of organizational IT problem 6.2. Demonstration that no adequate solutions exist 6.3. Development and presentation of a novel IT artifact (constructs, models, methods or instantiations) that addresses the problem 6.4. Evaluation of the IT artifact 6.5. Articulation of the value added to the IT knowledge-base and to practice 6.6. Explanation of the implications for IT management and practice 7. Artifacts and Sample Instantiations 7.1. Asset use database 7.2. Users 7.3. Digital representations of assets 7.4. Event/transaction messages 7.5. Roles, identities and permissions 8. Blockchain Applications: Data Reuse and Multiple Semantic Models 9. Summary, Contributions and Extensions 9.1. Contributions 9.2. Extensions References Appendix A.1 Sale of an Asset A.2 Asset Use Chapter 20 Have Accounting Reports Become Less Useful for Decision-Making? 1. Introduction 2. A Comprehensive Reporting Framework 2.1. Specific advantage and specific residual 2.2. The specific advantage 2.3. The specific residual 2.4. Past transactions and events 2.5. Retrospective data 2.6. The reports 2.7. The balance sheet 2.8. The costs and benefits statement 2.9. The income statement 2.10. The change in assets composition statement: Statement of realizations and derealizations 3. Discussion 3.1. Is the proposed system incentive compatible? 3.2. Data requirements 4. Conclusion References Chapter 21 Value of Fixed Asset Usage Information for Efficient Operation: A Nontraditional View 1. Introduction 2. Keep or Drop a Product Decision 3. An Illustrative Example 3.1. Fixed unused capacity cost analysis approach 4. Unused Capacity Account Keeping 4.1. Categories of utilizations that lead to unused capacities of fixed cost assets Bibliography Chapter 22 Role of Blockchain, AI and Big Data in Healthcare Industry 1. Introduction 2. Contemporary Concerns of Healthcare Industry 3. Activities Undertaken 4. Current State of Deployment of Blockchain Technology 5. Synergies Between Blockchain, Big Data and AI 6. Big Data in Healthcare 6.1. Application of big data in healthcare organizations and hospitals 6.2. Application of big data in healthcare analytics 6.2.1. Types of healthcare analytics (Brinkmann, 2019) 6.2.2. Why health care data security is important? 6.3. Trends of adoption of big data in India and other countries 6.4. Application of big data in epidemic/pandemic management 7. National Health Mission: Indian Approach 8. Technical Underpinning of Blockchain-Based Databases 9. Envisioning Healthcare Ecosystem: Ensuring Trust, Transparency, Privacy, Scalability, and Interoperability 9.1. Incentivization 10. Blockchain Application in Healthcare References Index