Cookies and company transparency

The problem

Cookies – which collect data from consumers browsing online – are widely used in digital marketing and customer relationship management. Yet, they also might matter in terms of how – and what – managers communicate with stakeholders like investors or regulators. Where traditionally internal information systems, sales reports and business updates were relied on for information cookies can enrich what is known by understanding customer activities behind historical results and identifying signals for future outcomes. But is cookie-collected data affecting what companies disclose publicly? Better internal information might support more disclosure, but companies could hold back when it doesn’t work for them. Understanding this link is important for assessing how digital consumer data shapes corporate transparency and accountability.

The research

Cookies – which collect data from consumers browsing online – are widely used in digital marketing and customer relationship management. Yet, they also might matter in terms of how – and what – managers communicate with stakeholders like investors or regulators. Where traditionally internal information systems, sales reports and business updates were relied on for information cookies can enrich what is known by understanding customer activities behind historical results and identifying signals for future outcomes. But is cookie-collected data affecting what companies disclose publicly? Better internal information might support more disclosure, but companies could hold back when it doesn’t work for them. Understanding this link is important for assessing how digital consumer data shapes corporate transparency and accountability.

The impact

Demonstrating that data shape disclosure decisions has implications for investors, regulators and the public. By showing cookie data improves firms’ internal information and can enhance corporate transparency, the research could support more accurate company valuation, more robust regulations, better corporate accountability, better data governance and privacy protection, and fairer markets. The study also introduces a novel way to measure firm-level data collection, for further research.

Department: Accounting 
Area: Cookies, consumer data, company disclosure and transparency