Abstract :

This research investigates the impact of digital transformation on corporate valuation in the Indonesian FMCG industry, focusing on the influence of digital maturity on stock returns. The study examines how technologies like AI, IoT, and data analytics affect financial performance and market perception. Using a quantitative approach, digital activity disclosed in annual reports from 2019 to 2023 for companies listed on the Indonesia Stock Exchange is analyzed. Key variables include digital maturity, profitability, sales growth, and stock return data. Findings reveal a negative and insignificant correlation between digital maturity and stock returns, suggesting higher digital maturity does not lead to better stock performance. The relationship is mediated by non-significant changes in financial performance metrics, indicating digital transformation may not enhance operational efficiency and market competitiveness. Data analytics and process automation showed less significant effects on performance. The study offers insights for corporate managers, investors, and policymakers on the strategic and cautious application of digital technologies.

---

Keywords :

Corporate Valuation, Digital Maturity, Digital transformation, FMCG Industry, Stock Returns.

---

References :

1. Agarwal, R., Santoso, A., Tan, K. T., & Wibowo, P. (2021, May 3). Ten ideas to unlock Indonesia’s growth after COVID-19. McKinsey. Retrieved June 11, 2024, from https://www.mckinsey.com/featured-insights/asia-pacific/ten-ideas-to-unlock-indonesias-growth-after-covid-19

2. Chen, W., & Srinivasan, S. (2023). Going Digital: Implications for Firm Value and Performance. SSRN. https://dx.doi.org/10.2139/ssrn.4177947

3. CHRISTENSON JR., A. P. (2023). Analytics and innovation management: Does big data play any role?. Business & IT, XIII(1), 58-67. https://doi.org/10.14311/bit.2023.01.07
4. Eremina, Y., Lace, N., & Bistrova, J. (2019). Digital maturity and corporate performance: The case of the Baltic states. Journal of Open Innovation: Technology, Market, and Complexity, 5(3). https://doi.org/10.3390/joitmc5030054
5. Erlangga, & Soekarno. (2020). THE IMPLICATIONS OF DIGITAL MATURITY ON FINANCIAL PERFORMANCE: EVIDENCE FROM INDONESIAN PUBLIC COMPANIES. SBM ITB.
6. Fernando, J. (2024, February 9). P/E Ratio Definition: Price-to-Earnings Ratio Formula and Examples. Investopedia. Retrieved June 14, 2024, from https://www.investopedia.com/terms/p/price-earningsratio.asp 6

7. Januar, F., Prastyo, T. J., & Syaipudin, U. (2022). EFFECT OF FINANCIAL PERFORMANCE ON STOCK RETURN DURING COVID-19. Jurnal Akuntansi Pajak, 23(1). http://jurnal.stie-aas.ac.id/index.php/jap
8. Jogiyanto, H. (2013). Teori Portofolio dan Analisis Investasi. BPPE Yogyakarta, 8.
9. Pervan, M., Pervan, I., & Curak, M. (2017). The Influence of Age on Firm Performance: Evidence from the Croatian Food Industry. Journal of Eastern Europe Research in Business and Economics, 1-9. https://doi.org/10.5171/2017.618681
10. Rahmawati, Ngampo, M. Y. A., & Dinakhir, S. (2023). The Effect of Financial Leverage on Profitability in Telecommunications Sub Sector Companies Listed on the Indonesia Stock Exchange. Pinisi Journal of Art, Humanity and Social Science, 3(4). https://ojs.unm.ac.id/PJAHSS/article/view/47385.
11. Renaldo, N., Sudarno, Hutahuruk, Junaedi, A. T., Andi, & Suhardjo. (2021). The Effect of Entrepreneurship Characteristics, Business Capital, and Technological Sophistication on MSME Performance. Journal of Applied Business and Technology, 2(2), 109-117.
12. Skha Management Consultant. (2022, November 15). FMCG Industry Challenges in the Digital Age and Various Solutions – SKHA Consulting. Skha. Retrieved February 29, 2024, from https://skha.co.id/insights/public-sector/consumer-industrial-goods/fmcg-industry-challenges-in-the-digital-age/

13. Statman, M. (1995). Behavioral Finance Versus Standard Finance. https://doi.org/10.2469/cp.v1995.n7.4
14. (2021, December 1). Bagaimana Kabar Industri FMCG Indonesia Selama Pandemi? Artikel ini telah tayang di Fortuneidn.com dengan judul “Bagaimana Kabar Industri FMCG Indonesia Selama Pandemi?”. https://www.fortuneidn.com/business/tanayastri/bagaimana-kabar. Fortuneidn. Retrieved May 28, 2024, from https://www.fortuneidn.com/business/tanayastri/bagaimana-kabar-industri-fmcg-indonesia-selama-pandemi?page= all
15. Tarmidi, D., & Sormin, F. (2020). Corporate Value: Impact of Sales Growth, Leverage, and Investment Opportunity Set. South Asian Research Journal of Business and Management, 2(4). 10.36346/sarjbm.2020.v02i04.004

16. Team, I. (2023, October 6). FMCG Industry in Indonesia: Outlook and Opportunities. InvestinAsia. Retrieved February 29, 2024, from https://investinasia.id/blog/fmcg-industry-in-indonesia/
17. Udokporo, C. K., Anosike, A., Lim, M., Nadeem, S. P., Garza-Reyes, J. A., & Ogbuka, C. P. (2020, May). Resources, Conservation and Recycling. Impact of Lean, Agile and Green (LAG) on business competitiveness: An empirical study of fast moving consumer goods businesses, 156(2020), 104714. https://doi.org/10.1016/j.resconrec.2020.104714.

18. Wijaya, E., & Kim, S. S. (2023). THE IMPACT OF AGES CHANGING FIRM CHARACTERISTICS TOWARD STOCK RETURN IN INDONESIA. JMBI UNSRAT, 10(1). https://doi.org/10.35794/jmbi.v10i1.44095