Does increased digital transformation promote a firm's financial performance? New insights from the quantile approach

Dung Anh Vu, Thinh Van Nguyen, Quang Minh Nhu and Tuyen Tran

Finance Research Letters, 2024, vol. 64, issue C

Abstract: When studying how digital transformation affects company performance, a phenomenon known as the "digitalization paradox" frequently emerges. In previous studies, however, an average estimate has often been used to assess the relationship between digital transformation and firm performance. Using a fixed-effects quantile technique, this study examines the heterogeneous effect of digital transformation on firm performance in Vietnam. The findings reveal a nuanced relationship, indicating that only high-performing companies gain from digital transformation while others do not. The extensive robustness tests in the empirical analysis support this result. It becomes clear that the mean approach may hide the genuine consequences of digital transformation on firm performance.

Keywords: Digital transformation; Financial performance; Fixed effect quantile regression; Vietnam (search for similar items in EconPapers)
JEL-codes: D21 D22 D25 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612324004604
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:64:y:2024:i:c:s1544612324004604

DOI: 10.1016/j.frl.2024.105430

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().