The Impact of Digital Technology Innovation on Corporate Financial Performance

Abstract

This paper aims to explore the impact of digital technology innovation on corporate financial performance from both positive and negative aspects, and put forward corresponding countermeasures. Through the research, we found that the wide application and deep integration of digital technology significantly improved the financial performance of enterprises, especially in improving operational efficiency, optimizing resource allocation, and enhancing market response ability. However, digital technology innovation also brings some challenges, such as data security issues, pressure to update technology, and so on. To address these challenges, enterprises need to build financial management systems that adapt to digital development, upgrade employees’ digital skills, strengthen data security management, and actively use policy support and market mechanisms to achieve a virtuous cycle of digital technology innovation and corporate financial performance. The research results of this paper not only enrich the theoretical research of corporate financial performance, but also provide practical guidance for the financial management of enterprises in the digital age.