The Effects of Changes in Financial Performance on Value Creation in Digital Transformation: A Comparison with Undigitalized Firms

We attempted to analyze the effect of changes in financial performance after digital transformation on firm value creation, compared to undigitalized firms for digitally transformed firms listed in the KOSPI market in Korea. To this end, we conducted an independent sample t-test and a multivariate regression analysis for a total of 12,143 firms listed on the KOSDAQ market, from 2011 to 2021. As a result of the empirical analysis of our study, it was confirmed that digitally transformed firms showed differential results in changes in financial performance compared to undigitalized firms. Overall, changes in profitability, stability, and growth are excellent, but in some aspects of activity and productivity, it is confirmed that they are weaker than undigitalized firms. In addition, it was confirmed that there was a difference in the change in the current ratio and the total asset turnover rate in the changes in the financial performance affecting the value creation. Nonetheless, there were insignificant differences in other variables.