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Firm digital transformation and corporate performance: The moderating effect of organizational capital

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  • Zareie, Mobina
  • Attig, Najah
  • El Ghoul, Sadok
  • Fooladi, Iraj

Abstract

We use textual analysis to measure corporate digital transformation by the frequency of digital terms in the firm 10-K report. We then show that this digital transformation score (DGS) is associated with corporate value. Importantly, we show that organizational capital, the quality of corporate governance, information quality, and firm IPO age play non-negligible roles in shaping the value creation of corporate digital transformation. Our fresh evidence indicates that firms need to enhance their organizational capital, corporate governance, and firm information quality to benefit from their digital transformation efforts.

Suggested Citation

  • Zareie, Mobina & Attig, Najah & El Ghoul, Sadok & Fooladi, Iraj, 2024. "Firm digital transformation and corporate performance: The moderating effect of organizational capital," Finance Research Letters, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:finlet:v:61:y:2024:i:c:s154461232400062x
    DOI: 10.1016/j.frl.2024.105032
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    Cited by:

    1. Yun Liao, 2024. "Super-efficiency and Stock Market Valuation: Evidence from Listed Banks in China (2006 to 2023)," Papers 2407.14734, arXiv.org.

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    More about this item

    Keywords

    Digital technologies; Valuation; Organization capital;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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