The digital leap: assessing the impact of digitalisation on firm valuation & performance in India
This study explores the impact of digital adoption on firm valuation and performance in the Indian context. We measure digitalisation through textual analysis of annual reports for firms listed on the NIFTY500 index. Our findings reveal that digital adoption has grown dramatically among these firms...
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| Format: | Final Year Project (FYP) |
| Language: | English |
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Nanyang Technological University
2024
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| Online Access: | https://hdl.handle.net/10356/175455 |
| _version_ | 1826124552922464256 |
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| author | Agrawal, Pranavi Sharma, Vedika Singh, Simarjiv |
| author2 | Wu Guiying, Laura |
| author_facet | Wu Guiying, Laura Agrawal, Pranavi Sharma, Vedika Singh, Simarjiv |
| author_sort | Agrawal, Pranavi |
| collection | NTU |
| description | This study explores the impact of digital adoption on firm valuation and performance in the Indian context. We measure digitalisation through textual analysis of annual reports for firms listed on the NIFTY500 index. Our findings reveal that digital adoption has grown dramatically among these firms from FY2014 to FY2023. Based on a panel two-way fixed effects model, we find that digital adoption is associated with higher firm valuation. However, there is no immediate effect of digitalisation on firm performance in the first-year post adoption. The tangible benefits of digitalisation, in terms of performance enhancement, become apparent from the second year onwards. Additionally, our research delves into the catalysts driving digitalisation in India, uncovering a notable surge in digital adoption following the introduction of UPI and the outbreak of the COVID-19 pandemic. Lastly, our analysis suggests that digitalisation has played a crucial role in helping firms mitigate the negative impacts of the pandemic on valuation. Overall, our research provides insights that are essential for business leaders and policymakers to effectively navigate the complexities of digital integration within firms. |
| first_indexed | 2024-10-01T06:22:12Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/175455 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T06:22:12Z |
| publishDate | 2024 |
| publisher | Nanyang Technological University |
| record_format | dspace |
| spelling | ntu-10356/1754552024-04-28T15:32:46Z The digital leap: assessing the impact of digitalisation on firm valuation & performance in India Agrawal, Pranavi Sharma, Vedika Singh, Simarjiv Wu Guiying, Laura School of Social Sciences guiying.wu@ntu.edu.sg Social Sciences Digitalisation India NIFTY500 Valuation Performance This study explores the impact of digital adoption on firm valuation and performance in the Indian context. We measure digitalisation through textual analysis of annual reports for firms listed on the NIFTY500 index. Our findings reveal that digital adoption has grown dramatically among these firms from FY2014 to FY2023. Based on a panel two-way fixed effects model, we find that digital adoption is associated with higher firm valuation. However, there is no immediate effect of digitalisation on firm performance in the first-year post adoption. The tangible benefits of digitalisation, in terms of performance enhancement, become apparent from the second year onwards. Additionally, our research delves into the catalysts driving digitalisation in India, uncovering a notable surge in digital adoption following the introduction of UPI and the outbreak of the COVID-19 pandemic. Lastly, our analysis suggests that digitalisation has played a crucial role in helping firms mitigate the negative impacts of the pandemic on valuation. Overall, our research provides insights that are essential for business leaders and policymakers to effectively navigate the complexities of digital integration within firms. Bachelor's degree 2024-04-24T05:38:30Z 2024-04-24T05:38:30Z 2024 Final Year Project (FYP) Agrawal, P., Sharma, V. & Singh, S. (2024). The digital leap: assessing the impact of digitalisation on firm valuation & performance in India. Final Year Project (FYP), Nanyang Technological University, Singapore. https://hdl.handle.net/10356/175455 https://hdl.handle.net/10356/175455 en application/pdf Nanyang Technological University |
| spellingShingle | Social Sciences Digitalisation India NIFTY500 Valuation Performance Agrawal, Pranavi Sharma, Vedika Singh, Simarjiv The digital leap: assessing the impact of digitalisation on firm valuation & performance in India |
| title | The digital leap: assessing the impact of digitalisation on firm valuation & performance in India |
| title_full | The digital leap: assessing the impact of digitalisation on firm valuation & performance in India |
| title_fullStr | The digital leap: assessing the impact of digitalisation on firm valuation & performance in India |
| title_full_unstemmed | The digital leap: assessing the impact of digitalisation on firm valuation & performance in India |
| title_short | The digital leap: assessing the impact of digitalisation on firm valuation & performance in India |
| title_sort | digital leap assessing the impact of digitalisation on firm valuation performance in india |
| topic | Social Sciences Digitalisation India NIFTY500 Valuation Performance |
| url | https://hdl.handle.net/10356/175455 |
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