Abstract: This paper uses the event study and case study methods to analyze the value effect and economic consequence of incorporating data assets into the balance sheet. First, this paper compares the market response to data-related companies vervus other companies around the releases of two key accounting policies related to the incorporation of data assets into the balance sheet. The findings indicate that the cumulative abnormal returns of data-related companies show a significant increase during the event window, suggesting that investors view the inclusion of data assets to the balance sheet as favorable news for these companies. Second, through simulating corporate accounting practices, the paper conducts a comparative analysis of the economic impact of data asset inclusion. It is found that companies’ liabilities, current ratios, and profit margins are all affected to a certain extent after incorporating data assets into the balance sheet. Although incorporating data assets into the balance sheet helps to enhance the market’s recognition of the value of data resources, it may also provide potential opportunities for management to manipulate financial statements. The paper concludes that accounting policies related to data assetization have taken an important step in leveraging the value of data resources, but the full realization of this value still requires the constraints of formal institutions and market intermediaries.

Key words: data resources, data assets, incorporating data assets into the balance sheet, financial statements, economic consequence