Evaluating the effects of digitalization on the financial security of the corporate sector: Multivariate econometric analysis
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Date
2025-06
Journal Title
Journal ISSN
Volume Title
Publisher
CEUR Workshop Proceedings
Abstract
This paper investigates the nature and intensity of digitalization’s impact on the corporate sector’s financial security in the context of digital transformation. The study aims to comprehensively assess this impact using multidimensional econometric tools to develop well-founded scientific and practical recommendations for enhancing financial resilience at the enterprise level. The research addresses several key tasks: adapting methodological approaches for quantifying financial security levels considering digital economy transformation processes; constructing classical OLS regression models to identify the basic relationships between digitalization and financial security; applying panel econometric models that account for spatial and temporal heterogeneity; and implementing a Bayesian modeling approach to obtain robust estimates under data limitations and potential violations of classical assumptions. Empirical results reveal a statistically significant negative relationship between the level of digitalization and financial security indicators of the corporate sector. This relationship is more pronounced among enterprises with higher levels of financial stability. The identified negative association should not be interpreted as an argument against digitalization, but rather as evidence of the need for a comprehensive approach to managing digital transformation, with attention to potential financial risks. The study proposes recommendations for adapting business models, improving financial monitoring systems, and strengthening the capacity of enterprises to address emerging challenges in the digital age.
Description
Keywords
digitalization, financial security, financial analysis, corporate sector, econometric analysis, panel models, Bayesian regression, digital transformation, financial risks
Citation
Evaluating the effects of digitalization on the financial security of the corporate sector: Multivariate econometric analysis [Electronic resource] / Yuliia Kovalenko, Sergii Krynytsia, Alina Osipchuk [et al.] // CH&CMiGIN’25 : Fourth International Conference on Cyber Hygiene & Conflict Management in Global Information Networks, June 20–22, 2025, Kyiv, Ukraine / [ed. by: S. Gnatyuk et al.]. – Electronic text data. – Kyiv, 2025. – Vol. 4024. – P. 452–467. – Mode of access: https://ceur-ws.org/Vol-4024/paper29.pdf. – Title from screen.