Data Visualization: The Impact on The Communication of Financial and Non-Financial Information to Stakeholders

Abstract

This article aims to discuss the impact of data visualization on the communication of financial and non-financial information to stakeholders. Data visualization plays a crucial role ineffectively communicating both financial and non-financial information. This article review will explore on the benefits as well as some of the imperfections of data visualization. By reviewing some of the existing literature, research, and articles, this article review can provide a foundation for understanding the theoretical underpinnings of data visualization and its application in stakeholder communication. The findings were that information, when presented visually, is much more effective in communicating certain data as compared to traditional reporting. Stakeholders are found out to be much more engaged, leading to better decision making towards the organizational success. However, there are also challenges of the presentations that affected the stakeholder’s information acquisition such as framing effect. The article review found out that stakeholders that are utilizing data visualizations such as charts, dashboard and heatmaps indicate a high perceived ease of use. Therefore, organizations should offer trainings as well as tech-support to bolster the level of adoption. This article review provide insight that data visualization can present good value towards stakeholders’communication. Stakeholders are able to appreciate organizations, turning complex data to be much more accessible and easier to digest. Thus increased the level of understanding of the organization’s performance holistically.