Data element utilization and firm value

Contemporary business transformation has established data resources as critical drivers of organizational value creation, though the precise mechanisms governing this relation remain insufficiently explored in extant literature. This research investigates the complex pathways that connect data element utilization to firm value, specifically the mediating influence of absorptive capacity and the moderating role of environmental, social, and governance (ESG) disclosure practices. The study uses sophisticated econometric methodologies including fixed-effects regression frameworks, mediation analyses, and moderation assessments to analyze comprehensive panel data from 843 Chinese listed enterprises from 2010 to 2022. The empirical evidence shows that data utilization initiatives have a significant positive relation with firm value creation, which is substantially mediated by organizational absorptive capacity and positively moderated by ESG disclosure intensity. Notably, environmental and social disclosure dimensions show more pronounced moderating effects than governance components. Additional heterogeneity analyses reveal systematic differences in data utilization value creation potential across distinct ownership configurations and industry characteristics. The findings illuminate that effective data-driven value creation is critically dependent on organizational capabilities for knowledge assimilation and application and demonstrated commitment to sustainability practices. This research advances the theoretical understanding of data-driven value creation mechanisms while providing actionable insights for organizational leadership and policy architects in increasingly digitalized economic environments. • Data element utilization positively impacts firm value, mediated by absorptive capacity. • ESG disclosure enhances the positive relationship between data utilization and firm value. • Environmental and social disclosures have stronger moderating effects than governance. • State-owned and high-tech firms benefit more from data utilization strategies. • Effective data strategies align with organizational learning and sustainability practices.