Lina Nur Hidayati, Muniya Alteza, Mahendra Ryansa Gallen Gagah Pratama
This study aims to explore how business digitalization influences firm value within the Indonesia Stock Exchange (IDX). It seeks to offer a thorough examination of the effects of digital transformation on corporate valuation. The findings highlight a strong positive correlation between digitalization and firm valuation, supporting signaling theory, which asserts that a company's transparency in disclosing its digital transformation efforts serves as a strategic indicator for investors and consumers. Greater transparency and specificity in disclosing digitalization information improve perceptions of corporate stability and future growth prospects, ultimately increasing firm value. As Indonesia undergoes rapid digital transformation, this research gains heightened relevance by offering critical insights into how companies that proactively communicate their digitalization strategies can strengthen their market positioning and secure a competitive edge in the financial landscape. This study makes a significant contribution by providing empirical evidence on the role of business digitalization in shaping firm value, particularly in an emerging market context where digital adoption is accelerating. This investigation highlights the strategic importance of digitalization disclosure in the Indonesian market, offering novel insights into how transparency in digital initiatives can serve as a competitive advantage. © (2025), (Science and Information Organization). All Rights Reserved.
Universitas Negeri Yogyakarta, Yogyakarta, Indonesia
