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Impact of digitalization on corporate financial profitability: the case of Russia

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  • Woosik Yu
  • Kazuhiro Kumo
  • Han-Sol Lee

Abstract

This study examines the impact of digitalisation on corporate financial performance in Russia. The findings reveal that digitalisation enhances corporate profitability, with its positive effects emerging after a time lag of a few years. This suggests that the adoption of digital technologies should be considered with medium- (or longer) term outlook. Furthermore, the results indicate that the interaction between imports, particularly of ICT products, and digitalisation enhances corporate profit, whereas no significant moderating effect of R&D was observed. This implies that in Russia, the benefits of digitalisation may be more effectively enhanced through the importation of ICT products and the expansion of ICT infrastructure, rather than through increased R&D.

Suggested Citation

  • Woosik Yu & Kazuhiro Kumo & Han-Sol Lee, 2025. "Impact of digitalization on corporate financial profitability: the case of Russia," Post-Communist Economies, Taylor & Francis Journals, vol. 37(5), pages 457-480, July.
    • Handle: RePEc:taf:pocoec:v:37:y:2025:i:5:p:457-480
    DOI: 10.1080/14631377.2025.2461944
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