The Role of Digital Transformation in Enhancing Financial Transparency and Business Performance
Keywords:
Business performance, Corporate governance, Digital transformation, Financial transparency, Technology adoptionAbstract
Digital transformation has become a critical driver of organizational change, reshaping how businesses operate, manage information, and deliver value to stakeholders. One of the key dimensions influenced by digital transformation is financial transparency, which plays a vital role in fostering trust, accountability, and informed decision-making. This article explores the role of digital technologies in enhancing financial transparency and, in turn, improving overall business performance. By integrating advanced tools such as big data analytics, blockchain, artificial intelligence, and cloud-based accounting systems, organizations are able to ensure more accurate, real-time, and accessible financial reporting. Such improvements not only reduce the risks of fraud and errors but also enhance compliance with regulatory frameworks and corporate governance standards. Furthermore, digital transformation enables firms to optimize operational efficiency, streamline processes, and foster data-driven strategies that directly contribute to better performance outcomes. Transparency in financial reporting also strengthens stakeholder confidence, thereby facilitating investment opportunities and long-term value creation. The findings suggest that companies embracing digital transformation can achieve a dual benefit: improving financial accountability while simultaneously driving innovation and competitiveness. This study contributes to the growing literature on the intersection of digital innovation and corporate governance by highlighting how transparency, enabled by technology, serves as a catalyst for sustainable growth. It emphasizes that organizations need to adopt not only technological infrastructure but also cultural and strategic alignment to fully realize the potential of digital transformation. Ultimately, enhancing financial transparency through digitalization is not merely a compliance requirement but a strategic approach to improving business performance in an increasingly dynamic and competitive global market.
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