The impact of digitalisation on firm value, financial performance, and green initiatives: evidence from Vietnam, an emerging economy

Purpose This study examines the impact of digitalisation on firm value, financial performance, and sustainability, with a focus on green initiatives among listed firms in Vietnam. Design/methodology/approach The research analyses 100 of the largest listed companies on the Hanoi and Ho Chi Minh stock exchanges as of December 31, 2023. A Generalised Method of Moments (GMM) regression model assesses the effects of digitalisation on firm value, profitability, and sustainability from 2014 to 2023. Findings Digitalisation enhances firm value, profitability, and green initiatives, reinforcing its economic and environmental role. However, the COVID-19 pandemic weakened its effectiveness, highlighting the need for resilient digital strategies. Its impact varies by firm size, with stronger financial performance effects in smaller firms and greater sustainability benefits in larger firms. The results also reveal a short-term impact on firm value and nonlinear effects on financial performance and green initiatives. Research limitations/implications This study reaffirms the multidimensional role of digitalisation in enhancing firm value, profitability, and sustainability. It provides a foundation for future research on long-term digitalisation effects across different economic and regulatory contexts. Practical implications Firms should align digitalisation with sustainability goals to maximise financial and environmental benefits. Policymakers should develop regulatory frameworks that support digital adoption for sustainable development. Investors may see highly digitalised firms as promising sustainable investments. Originality/value This study is among the first to explore the interplay between digitalisation and sustainability in an emerging market, using comprehensive data up to 2023. It provides empirical evidence on how digital transformation fosters corporate sustainability and economic growth, particularly in Vietnam’s evolving regulatory and business landscape.

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Publication Details

Journal
Journal of Applied Accounting Research
Published
2025-05-27
DOI
https://doi.org/10.1108/jaar-01-2025-0015
Citations
2
Primary Topic
Energy, Environment, Economic Growth
Type
article
Field-Weighted Citation Impact
6.26
Controls
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article

The impact of digitalisation on firm value, financial performance, and green initiatives: evidence from Vietnam, an emerging economy

Huu Cuong Nguyen, Hong‐Quan Duong
2 citations
Journal of Applied Accounting Research
Energy, Environment, Economic Growth
6.26
article

The impact of digitalisation on firm value, financial performance, and green initiatives: evidence from Vietnam, an emerging economy

Huu Cuong Nguyen, Hong‐Quan Duong
article en
2 citations

Abstract

Purpose This study examines the impact of digitalisation on firm value, financial performance, and sustainability, with a focus on green initiatives among listed firms in Vietnam. Design/methodology/approach The research analyses 100 of the largest listed companies on the Hanoi and Ho Chi Minh stock exchanges as of December 31, 2023. A Generalised Method of Moments (GMM) regression model assesses the effects of digitalisation on firm value, profitability, and sustainability from 2014 to 2023. Findings Digitalisation enhances firm value, profitability, and green initiatives, reinforcing its economic and environmental role. However, the COVID-19 pandemic weakened its effectiveness, highlighting the need for resilient digital strategies. Its impact varies by firm size, with stronger financial performance effects in smaller firms and greater sustainability benefits in larger firms. The results also reveal a short-term impact on firm value and nonlinear effects on financial performance and green initiatives. Research limitations/implications This study reaffirms the multidimensional role of digitalisation in enhancing firm value, profitability, and sustainability. It provides a foundation for future research on long-term digitalisation effects across different economic and regulatory contexts. Practical implications Firms should align digitalisation with sustainability goals to maximise financial and environmental benefits. Policymakers should develop regulatory frameworks that support digital adoption for sustainable development. Investors may see highly digitalised firms as promising sustainable investments. Originality/value This study is among the first to explore the interplay between digitalisation and sustainability in an emerging market, using comprehensive data up to 2023. It provides empirical evidence on how digital transformation fosters corporate sustainability and economic growth, particularly in Vietnam’s evolving regulatory and business landscape.

Journal of Applied Accounting ResearchVol. 27(1)
University of Da Nang (VN)
Openalex Percentile: Top 4%
Energy, Environment, Economic Growth
6.26
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