UKO, COMFORT OLUCHUKWU and Covenant University, Theses Masters (2024) DIGITAL TRANSFORMATION AND FINANCIAL PERFORMANCE: A STUDY OF LISTED MANUFACTURING COMPANIES IN NIGERIA. Masters thesis, Covenant University.
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Abstract
This study investigates the relationship between digital transformation and the financial performance of listed companies in the manufacturing industry in Nigeria from 2019 to 2023. The rapid pace of digital innovation has prompted many manufacturing firms to adopt new technologies; nonetheless, how these modifications affect financial performance remains under-explored. The purpose of this research is to bridge this gap by examining how digital transformation (IT infrastructure, digital payments, digital analytic tools, digital technology) influences key financial metrics—Debt to Equity Ratio (DER), Return on Equity (ROE), Return on Assets (ROA), and Net Assets per Share (NAPS). Using data from 33 listed manufacturing firms, this study employs the ordinary least squares (OLS) regression method to analyze periodic observations throughout the standard reporting period, which runs from January 1 to December 31. The results show significant positive relationships between digital transformation and ROA and ROE, suggesting that digital initiatives enhance operational efficiency and profitability. However, no significant impact was found on DER and NAPS, indicating that the benefits of digital transformation may not extend uniformly across all financial measures. The findings of the research have salient ramifications for Nigerian industrial firms. This positive correlation between digital transformation and profitability underscores the strategic importance of investing in digital technologies. Firms are encouraged to continue their digital transformation efforts to achieve improved financial performance. Policymakers and industry stakeholders should support these initiatives by providing a conducive environment for digital innovation.
| Item Type: | Thesis (Masters) |
|---|---|
| Uncontrolled Keywords: | Digital Transformation, Board size, Ownership, Financial Health |
| Subjects: | H Social Sciences > HF Commerce > HF5601 Accounting H Social Sciences > HG Finance |
| Divisions: | Faculty of Law, Arts and Social Sciences > School of Management |
| Depositing User: | nwokealisi |
| Date Deposited: | 24 Sep 2024 11:24 |
| Last Modified: | 24 Sep 2024 11:24 |
| URI: | http://eprints.covenantuniversity.edu.ng/id/eprint/18435 |
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