The Impact of Digitalization on Corporate Financial 
Performance: Evidence from Listed Companies in the 
Electronic Equipment Manufacturing Industry

Qingming Yang

doi:10.70711/memf.v2i10.8062

The Impact of Digitalization on Corporate Financial Performance: Evidence from Listed Companies in the Electronic Equipment Manufacturing Industry

Qingming Yang

Abstract

In today's world, the continuous advancement of science and technology has imposed specific requirements on corporate digitalization. Companies with high digitalization levels typically demonstrate higher efficiency, more refined management practices, achieve significant financial performance, possess more comprehensive competitiveness, and are better positioned to thrive in intense market competition.
Consequently, businesses are accelerating their digital transformation efforts to secure long-term development. This study examines listed
companies in the electronic equipment manufacturing industry from 2017 to 2021, investigating how digitalization impacts corporate financial
performance. The findings reveal that digitalization enhances financial performance through two primary mechanisms: first, it reduces production costs, thereby improving financial outcomes, and second, it partially mediates this cost-reduction effect.

Keywords

Digitalization; Financial performance; Listed companies in electronic equipment manufacturing industry

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DOI: http://dx.doi.org/10.70711/memf.v2i10.8062

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