Signaling digitalisation through corporate websites: the effect on firm value

Abstract

In the past decade, attention toward digitalisation and its positive effects on the ability of companies to create value has grown among both professionals and academics. Nevertheless, data related to the level of firm digitalisation is poorly captured by financial disclosure. As a consequence, corporate websites present the potential to represent an ideal communication channel to provide information on digitalisation for financial claimants. Despite the relevance of the topic, there is a lack of studies on the impact of digitalisation-related information, implicitly or explicitly provided on corporate websites, and its impact on firm value. This paper aims to fill such gap through a content analysis of digitalisation-related information of 114 corporate websites. Results demonstrate that information dissemination regarding corporate digitalisation processes through corporate websites can increase firm value. Concluding, this study contributes to existing literature by identifying a major effect of digitalisation and relevant information on firm performance.