Digital Transformation and Corporate Valuation: Unveiling the Influence of Digital Maturity in Stocks Return in Indonesian FMCG Industry
Journal Title: International Journal of Current Science Research and Review - Year 2024, Vol 7, Issue 06
Abstract
This research investigates the impact of digital transformation on corporate valuation in the Indonesian FMCG industry, focusing on the influence of digital maturity on stock returns. The study examines how technologies like AI, IoT, and data analytics affect financial performance and market perception. Using a quantitative approach, digital activity disclosed in annual reports from 2019 to 2023 for companies listed on the Indonesia Stock Exchange is analyzed. Key variables include digital maturity, profitability, sales growth, and stock return data. Findings reveal a negative and insignificant correlation between digital maturity and stock returns, suggesting higher digital maturity does not lead to better stock performance. The relationship is mediated by non-significant changes in financial performance metrics, indicating digital transformation may not enhance operational efficiency and market competitiveness. Data analytics and process automation showed less significant effects on performance. The study offers insights for corporate managers, investors, and policymakers on the strategic and cautious application of digital technologies.
Authors and Affiliations
Muhammad Rafi An-Nabil Yuswadi, Dr. Subiakto Soekarno MBA,
Keywords
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- EP ID EP739109
- DOI 10.47191/ijcsrr/V7-i6-106
- Views 77
- Downloads 0
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