Are Digital Transformation Investments Paying Off? Evidence from the Consumer Staples Industry
Type
conference paper
Date Issued
2025
Author(s)
Abstract
This paper investigates the financial outcomes of digital transformation (DT) investments, distinguishing between short-term market reactions and medium-term effects on valuation and capital costs. Using an event study and panel data analyses in the European consumer goods industry, the re-search shows that single DT announcements do not yield significant ab-normal returns, while sustained digital maturity correlates with higher mar-ket-to-book ratios and lower capital costs. These findings offer potential strategic insights into prioritizing DT investments for competitive ad-vantage.
Language
English
Event Title
20th International Conference on Wirtschaftsinformatik, September 2025, Münster, Germany