Digital Transformation as a Value Driver: New Evidence from an Emerging Market

Abstract

This study carefully examines whether digital transformation increases firm value in Vietnam. While technology adoption has grown rapidly in the country, academic evidence on its impact remains relatively limited. The previous research findings consistently emphasize that digitalization can improve information processing, resource utilization efficiency, and governance quality. Therefore, this study investigates whether these valuation benefits are actually present in an emerging market. This study utilizes panel data from 319 listed companies over eight years. The Ordinary Least Squares (OLS), Fixed Effects, and Generalized Method of Moments methods were applied to address heterogeneity and endogeneity appropriately. The results show that digital transformation has a positive and significant impact on firm value. These findings are largely consistent with previous studies reporting increased valuations through a better information environment, stronger internal controls, and improved digital capabilities. This study further adds new evidence from Vietnam and applies a dynamic estimation framework to support stronger causal interpretations. However, key limitations primarily relate to the use of disclosure-based measures and a lack of industry-level comparisons. These issues clearly present opportunities for future research.