The effect of digitalization on the value and performance of US firms listed on NASDAQ and NYSE with the onset of COVID-19

• Main Authors: Kam, Zhi Yi, Chen, Yu, Agarwal, Mihika
• Other Authors: Wu Guiying, Laura
• Format: Final Year Project
• Language: English
• Published: Nanyang Technological University 2024
• Subjects: Social Sciences; Economic theory; Money and banking; Business; Finance; Capital market
• Online Access: https://hdl.handle.net/10356/175322
• Institution: Nanyang Technological University

With the onset of COVID-19 and the increasing digitalization in all sectors, we are motivated to examine the effect of digitalization on the value and performance of US Firms listed on the NASDAQ and NYSE with the Onset of COVID-19. We contributed to the study by applying Chen & Suraj Srinivan (2019) study on the effect of digitalization on US firms. We ran the Two-Way Fixed Effect models on our balanced panel data set from 2015 to 2022. The results showed that Tobin’s Q is positively correlated with digital adoption interacting with COVID-19 dummy and employees' growth (with a lag of 4 periods) with COVID-19 dummy. Regarding sales growth, excess return, and profit growth, there is no significant relationship with the interactive variables. We discovered that there is a discrepancy between the effect of digitalization on market perception and the real impact on the firms.