This study examines stock market data to assess shareholders' responses to 210 audit data analytics (ADA) announcements from the years 2006 to 2018. Because the benefits and costs of ADA are typically intangible, hidden, and long-term oriented, no studies have empirically validated ADA's associated risks and returns. We analyze the abnormal return of each announcing firm's stock within a two-day period around the date when the firm made an announcement, capturing potential improvements in shareholder value. We find that shareholders are favorable about the prospective returns of client firms who adopt less sophisticated ADA and selective ADA, as those firms can easily coordinate and manage ADA implementation. Our findings may help researchers and practitioners understand complex ADA adoption and related issues, while also helping firms maximize the market impact of their ADA adoption strategies.
Data Availability: Data are available from the public sources cited in the text.