FINANCIAL MANAGEMENT STRATEGIES IN THE ERA OF DIGITAL TRANSFORMATION

Dwi Arini Nursansiwi; Armiani Armiani

doi:10.62207/rbvq0t26

Authors

Dwi Arini Nursansiwi Universitas Mbojo Bima, NTB, Indonesia Author
Armiani Armiani STIE AMM Mataram, NTB, Indonesia Author

DOI:

https://doi.org/10.62207/rbvq0t26

Keywords:

Digital transformation, cost of capital, financing structure, fintech, blockchain, systematic literature review

Abstract

Digital transformation (DT) has had a significant impact on financial management, but its specific influence on the cost of capital and corporate financing structures is still poorly understood. This research aims to identify how DT influences capital costs and changes in financing structures across industries. Using approach Systematic Literature Review (SLR) based on PRISMA guidelines, this research finds that DT can reduce the cost of capital through increased efficiency and transparency, as well as lead to a shift in financing preferences with the adoption of technologies such as fintech and blockchain. The implications of this research provide insight for financial managers, investors and policy makers to formulate strategies that support technology adoption in corporate financing.

References

Agostino, D., Arnaboldi, M., & Lema, M. (2020). New development: covid-19 as an accelerator of digital transformation in public service delivery. Public Money & Management, 41(1), 69-72. https://doi.org/10.1080/09540962.2020.1764206

ATASEL, O., GÜNEYSU, Y., & Ünal, H. (2020). Impact of environmental information disclosure on cost of equity and financial performance in an emerging market: evidence from turkey. Ekonomika, 99(2), 76-91. https://doi.org/10.15388/ekon.2020.2.5

Avira, S., Setyaningsih, E., & Utami, S. (2023). Digital transformation in financial management: harnessing technology for business success. Influence International Journal of Science Review, 5(2), 336-345. https://doi.org/10.54783/influencejournal.v5i2.161

Azieva, R. (2021). Assessing the readiness of oil and gas companies for digital transformation.. https://doi.org/10.15405/epsbs.2021.11.244

Battisti, E., Nirino, N., & Christofi, M. (2023). Guest editorial: financial innovation (fintech) and sustainability: new tools for sustainable achievements. Qualitative Research in Financial Markets, 15(4), 553-556. https://doi.org/10.1108/qrfm-08-2023-236

Cao, W. (2023). What are the risks of financial management under the digital transformation of enterprises? evidence from systems engineering. SHS Web of Conferences, 169, 01023. https://doi.org/10.1051/shsconf/202316901023

Chen, J. (2024). Fintech: digital transformation of financial services and financial regulation. Highlights in Business Economics and Management, 30, 38-45. https://doi.org/10.54097/512jkg86

Chen, Q. (2024). Fintech innovation in micro and small business financing. IJGEM, 2(1), 284-290. https://doi.org/10.62051/ijgem.v2n1.36

Dhamija, P. and Bag, S. (2020). Role of artificial intelligence in operations environment: a review and bibliometric analysis. The TQM Journal, 32(4), 869-896. https://doi.org/10.1108/tqm-10-2019-0243

Firmansyah, D., Saepuloh, D., & Dede, N. (2022). Competitiveness: digital literacy and digital transformation. Journal of Finance and Business Digital, 1(3), 237-250. https://doi.org/10.55927/jfbd.v1i3.1348

Himeur, Y., Elnour, M., Fadli, F., Meskin, N., Petri, I., Rezgui, Y., … & Amira, A. (2022). Ai-big data analytics for building automation and management systems: a survey, actual challenges and future perspectives. Artificial Intelligence Review, 56(6), 4929-5021. https://doi.org/10.1007/s10462-022-10286-2

Huang, S. (2021). Fin-tech and corporate innovation.. https://doi.org/10.2991/assehr.k.211209.379

Kan, L. and Sun, R. (2022). Research on the impact of digital finance on innovation and r & d of technology-based sems<br/>—moderating role based on financial flexibility. American Journal of Industrial and Business Management, 12(11), 1650-1666. https://doi.org/10.4236/ajibm.2022.121190

Khan, S. (2022). Financing constraints and firm-level responses to the covid-19 pandemic: international evidence. Research in International Business and Finance, 59, 101545. https://doi.org/10.1016/j.ribaf.2021.101545

Kherbachi, S. (2023). Digital economy under fintech scope: evidence from african investment. Fintech, 2(3), 475-483. https://doi.org/10.3390/fintech2030027

Kupriyanova, M. (2023). The impact of digitalization on the manufacturing industry. E3s Web of Conferences, 431, 05030. https://doi.org/10.1051/e3sconf/202343105030

Li, J., Wei, R., & Guo, Y. (2022). How can the financing constraints of smes be eased in china?-effect analysis, heterogeneity test and mechanism identification based on digital inclusive finance. Frontiers in Environmental Science, 10. https://doi.org/10.3389/fenvs.2022.949164

Liu, S. (2022). The development of digital financial inclusion and corporate financialization., 13-23. https://doi.org/10.2991/978-94-6463-054-1_3

Loginov, M., Usova, N., & Baigotanova, A. (2021). Ensuring sustainable development of the national financial market based on digital financial services. SHS Web of Conferences, 93, 02029. https://doi.org/10.1051/shsconf/20219302029

Manik, S. (2024). Digital transformation strategy in government governance: a study at the ministry of finance. Brilliant Research and Conceptual Journal, 9(1), 1. https://doi.org/10.28926/briliant.v9i1.1623

Moşteanu, N. and Fathi, B. (2020). Financial digitalization and its implication on jobs market structure. The Business & Management Review, 11(01). https://doi.org/10.24052/bmr/v11nu01/art-32

Pangandaheng, F., Maramis, J., Saerang, D., Dotulong, L., & Soepeno, D. (2022). Digital transformation: a literature review in the business and government sectors. Emba Journal Journal of Economic Research, Business Management and Accounting, 10(2). https://doi.org/10.35794/emba.v10i2.41388

Pirola, F., Cimini, C., & Pinto, R. (2019). Digital readiness assessment of italian smes: a case-study research. Journal of Manufacturing Technology Management, 31(5), 1045-1083. https://doi.org/10.1108/jmtm-09-2018-0305

Qin, L. (2023). How fintech affects financial sustainability in the electric power industry?—evidence from chinese companies. Frontiers in Environmental Science, 11. https://doi.org/10.3389/fenvs.2023.1297030

Qu, Y. (2023). Enterprise financial management innovation in digital transformation., 369-375. https://doi.org/10.2991/978-94-6463-298-9_40

Rha, J. and Lee, H. (2022). Research trends in digital transformation in the service sector: a review based on network text analysis. Service Business, 16(1), 77-98. https://doi.org/10.1007/s11628-022-00481-0

Sánchez, M. and Zuntini, J. (2018). Organizational readiness for the digital transformation: a case study research. Revista Gestão & Tecnologia, 18(2), 70-99. https://doi.org/10.20397/2177-6652/2018.v18i2.1316

Susanti, K. (2024). Challenges and opportunities for Islamic banking in the digital era of sustainable growth. persya, 2(1), 13-19. https://doi.org/10.62070/persya.v2i1.53

T, M. (2024). A study on the impact of blockchain technology on islamic financial system: challenges and opportunities. International Journal of Research in Finance and Management, 7(1), 24-32. https://doi.org/10.33545/26175754.2024.v7.i1a.277

Thottoli, M. (2023). Embracing digital transformation in financial services: from past to future. Sage Open, 13(4). https://doi.org/10.1177/21582440231214590

Wang, R. (2023). The impact of digital financial inclusion on financing constraints: evidence from china’s a-share listed companies. Advances in Economics and Management Research, 6(1), 328. https://doi.org/10.56028/aemr.6.1.328.2023

William, P. (2023). A comprehensive analysis of cloud computing impact on digital transformation in e-india. Swb, 01(02), 35-40. https://doi.org/10.61925/swb.2023.1205

Yoro, M. (2024). Impact of financial reporting transparency on investor decision-making. American Journal of Accounting, 6(1), 25-36. https://doi.org/10.47672/ajacc.1785

Yuan, B., Zhao, K., & Shen, X. (2021). Digital finance and corporate value: an empirical evidence from china. BCP Business & Management, 15, 76-82. https://doi.org/10.54691/bcpbm.v15i.222

Zhang, L., Zhang, S., & Guo, Y. (2019). The effects of equity financing and debt financing on technological innovation. Baltic Journal of Management, 14(4), 698-715. https://doi.org/10.1108/bjm-01-2019-0011

Zhang, Z. (2023). Analysis of digital transformation of financial management in the era of artificial intelligence. Highlights in Business Economics and Management, 23, 876-882. https://doi.org/10.54097/v4nj7935

Zhao, M. (2022). Research on financial risk assessment based on artificial intelligence. SHS Web of Conferences, 151, 01017. https://doi.org/10.1051/shsconf/202215101017

Zianko, V. (2023). Artificial intelligence in the financial sector of ukraine: a driver of development and a factor of modernization. Innovation and Sustainability, (3), 6-21. https://doi.org/10.31649/ins.2023.3.6.21