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Digital Transformation, Financial Performance and Sustainability: Evidence for European Union Listed Companies

Author

Listed:
  • Ion Ionascu

    (Bucharest University of Economic Studies, Romania)

  • Mihaela Ionascu

    (Bucharest University of Economic Studies, Romania)

  • Elena Nechita

    (Bucharest University of Economic Studies, Romania)

  • Marian Sacarin

    (Bucharest University of Economic Studies, Romania)

  • Mihaela Minu

    (Bucharest University of Economic Studies, Romania)

Abstract

This paper aims to discuss the digitalization of European listed companies in the context of the European Green Deal. The digital transformation can support companies in the field of corporate social responsibility, particularly in terms of environmental protection. Companies’ digitalization may have a beneficial impact by adopting ‘smart’ technologies that allow for the efficient use of natural resources and the reduction of pollution, enabling the transformation of business models into sustainable ones within the circular and digitized economy. Based on a large sample of companies listed on the main European Union financial markets, this paper aimed at analysing the extent to which digitalization efforts are part of the companies’ general tendencies of becoming good corporate citizens, especially in regard to environmental protection. The study also showed that digitalization efforts are rewarded in financial markets, with investors providing more capital to companies that digitize their activities and are more socially responsible.

Suggested Citation

  • Ion Ionascu & Mihaela Ionascu & Elena Nechita & Marian Sacarin & Mihaela Minu, 2022. "Digital Transformation, Financial Performance and Sustainability: Evidence for European Union Listed Companies," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(59), pages 1-94.
    • Handle: RePEc:aes:amfeco:v:24:y:2022:i:59:p:94
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    References listed on IDEAS

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    1. Renato Camodeca & Alex Almici, 2021. "Digital Transformation and Convergence toward the 2030 Agenda’s Sustainability Development Goals: Evidence from Italian Listed Firms," Sustainability, MDPI, vol. 13(21), pages 1-18, October.
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    4. Verena Hossnofsky & Sebastian Junge, 2019. "Does the market reward digitalization efforts? Evidence from securities analysts’ investment recommendations," Journal of Business Economics, Springer, vol. 89(8), pages 965-994, December.
    5. Verhoef, Peter C. & Broekhuizen, Thijs & Bart, Yakov & Bhattacharya, Abhi & Qi Dong, John & Fabian, Nicolai & Haenlein, Michael, 2021. "Digital transformation: A multidisciplinary reflection and research agenda," Journal of Business Research, Elsevier, vol. 122(C), pages 889-901.
    6. Alireza Vafaei & Kamran Ahmed & Paul Mather, 2015. "Board Diversity and Financial Performance in the Top 500 Australian Firms," Australian Accounting Review, CPA Australia, vol. 25(4), pages 413-427, December.
    7. Ricardo Vinuesa & Hossein Azizpour & Iolanda Leite & Madeline Balaam & Virginia Dignum & Sami Domisch & Anna Felländer & Simone Daniela Langhans & Max Tegmark & Francesco Fuso Nerini, 2020. "The role of artificial intelligence in achieving the Sustainable Development Goals," Nature Communications, Nature, vol. 11(1), pages 1-10, December.
    8. Mihaela Ionascu & Ion Ionascu & Marian Sacarin & Mihaela Minu, 2018. "Benefits of global financial reporting models for developing markets: The case of Romania," PLOS ONE, Public Library of Science, vol. 13(11), pages 1-24, November.
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    Citations

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    Cited by:

    1. Jie Dong, 2023. "Study on the Identification of Financial Risk Path Under the Digital Transformation of Enterprise Based on DEMATEL-ISM-MICMAC," Papers 2305.04216, arXiv.org.
    2. Yingjia Zhong & Hongyan Zhao & Tianbao Yin, 2023. "Resource Bundling: How Does Enterprise Digital Transformation Affect Enterprise ESG Development?," Sustainability, MDPI, vol. 15(2), pages 1-18, January.
    3. Filipovska Olivija, 2023. "General Aspects of Bank Strategy on the Digital Transformation in North Macedonia," Zagreb International Review of Economics and Business, Sciendo, vol. 26(2), pages 203-214.
    4. Mariana Bunea & Liliana Ionescu Feleaga & Bogdan Stefan Ionescu, 2023. "The CEO characteristics and Romanian banks performance," E&M Economics and Management, Technical University of Liberec, Faculty of Economics, vol. 26(4), pages 99-118, December.
    5. Rafael Martínez-Peláez & Alberto Ochoa-Brust & Solange Rivera & Vanessa G. Félix & Rodolfo Ostos & Héctor Brito & Ramón A. Félix & Luis J. Mena, 2023. "Role of Digital Transformation for Achieving Sustainability: Mediated Role of Stakeholders, Key Capabilities, and Technology," Sustainability, MDPI, vol. 15(14), pages 1-27, July.

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    More about this item

    Keywords

    digitalization of companies; digitalization index; Environmental; Social and Governance score; sustainable development; European Green Deal;
    All these keywords.

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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