Role of Data Visualization in Finance
- 1 Department of Computer Information Systems & Analytics, University of Central Arkansas, Conway, USA
- 2 Department of Economics and Finance, University of Texas at El Paso, El Paso, USA
Abstract
Even though data visualization has been gaining momentum in different fields of study, Finance needs to catch up. There still needs to be more use of data visualization tools to communicate with the financial and non-financial users of financial data. Financial data or numbers are sometimes difficult to comprehend, even for the mid-and low-level executives of a firm. In this study, we show how a firm can convey financial information to users by utilizing data visualization tools. While some improvements have been noticeable in filing proxy statements, there is still more room to use graphs and charts in 10-K and annual reports. Firms should use graphs and charts more frequently so that non-financial users can decipher the underlying meaning of numbers within the shortest possible time.
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