Digital Transformation and Financial Performance: Evidence from Emerging Market Firms
Keywords:
Digital Transformation, Financial Performance, Emerging Markets, Firm PerformanceAbstract
Companies in developing economies are seeing the effects of increased competition, new regulations, and the fast spread of technology, all of which are making digital transformation a top priority. how developing market companies' financial performance relates to their digital transformation efforts. The research examines the effects of digital investments, technology adoption, and digital capability development on critical financial metrics including ROA, ROE, revenue growth, and market valuation. It draws on secondary data from publicly listed companies in selected emerging markets. Results from panel data regression analysis show that the level of digital transformation is positively and significantly correlated with the performance of the firm. Companies that use data analytics, cloud computing, and automation are able to optimize costs, increase consumer engagement, and improve operational efficiency. As a result, these companies have higher financial results. Emerging market institutional quality, business size, and industry characteristics all have a moderating role in the impact of digital transformation.
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Copyright (c) 2019 International Journal of Engineering Science & Humanities
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