Segment Data Decision-Usefulness Model: An Exploration

Abstract

What are the attributes of decision-useful data? Answering that question with a workable model could facilitate developing more decision-useful accounting standards, disclosing more decision-useful data, and verifying the data’s decision-usefulness. Relative to segment data, this two-phased mixed methods study explores such a model. Phase one is qualitative; construct measures and a questionnaire were developed. Phase two is quantitative; 1,600 investors were surveyed and the measures assayed. Fifty-five (3.4%) usable responses were obtained and analyzed using partial least squares. Our measures, are reliable and display convergent and discriminant validities. Moreover, our model has predictive ability and thus utility.