The Digital Transformation of Financial Disclosure: How Emerging Technologies Are Revolutionizing Corporate Transparency and Investor Trust
Abstract
Purpose:The digital transformation of financial disclosure has revolutionized corporate transparency and investor trust through the integration of emerging technologies such as blockchain, artificial intelligence (AI), and big data analytics. This study investigates the impact of these innovations on financial reporting accuracy, regulatory compliance, and fraud detection.
Methodology:Using a mixed-method research design, both qualitative and quantitative data were analyzed, including statistical models such as regression analysis, chi-square tests, and correlation analysis.
Findings: The results indicate a strong positive correlation between digital financial disclosure technologies and investor confidence (r = 0.81). Blockchain adoption was found to reduce financial misreporting by over 35%, while AI-driven automation accounted for a 78% improvement in reporting efficiency. Furthermore, firms leveraging big data analytics experienced a 28.57% increase in investor trust from 2020 to 2024.
Conclusions: The study concludes that emerging technologies significantly enhance corporate accountability and investor confidence but also pose challenges such as cybersecurity risks and regulatory disparities. The businesses invest in AI and blockchain for enhanced compliance and fraud prevention while policymakers establish global standards for digital financial reporting.
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