Research On The Impact Of Digitization Degree On Financial Performance Of Wholesale And Retail Industry

Over the years,with the booming development of the Internet e-commerce platform,the traditional wholesale and retail industry is limited by space and affected by costs.As a result,it lacks flexibility and price competitiveness in competition,and the overall growth of the wholesale and retail industry slows down.As the novel COVID-19 pandemic spreads around the world,the offline real economy has suffered a severe blow,and the traditional wholesale and retail industries are facing great challenges.For this purpose,whether the traditional wholesale and retail industry is able to speed up its own industry digitization with the help of digital technology and speed up the industry development with innovation has attracted much attention from the people and market.Based on the above background,the paper selects 93 listed wholesale companies and retail companies as research objects to study the impact of digitization degree on their financial performance,in order to provide reference for enterprises planning to implement digital strategy.Above all,this paper defines key core concepts and explain the theoretical basis.The relationship between the degree of digital and the financial performance of companies,as well as the relationship between business model innovation,management expense ratio and the quoted companies’ financial performance of are dwell on in the following paragraphs.On a certain theoretical basis,this paper uses text mining method to mine the financial statements of China’s listed wholesale and retail companies from 2011 to 2020 to build an index that can measure the degree of companies’ digitalization and business model innovation.And the resource-based view is used to investigate the multiple impacts and internal mechanisms of digital degree on the financial performance of China’s wholesale and retail listed companies.The test results demonstrate that the digitalization degree impact the financial performance of wholesale and retail listed companies through management and sales activities.In sales activities,the higher the digitization degree of wholesale and retail enterprises,the more full their business model innovation,the worse their financial performance;In management activities,the mediating effect of management expense ratio has not been highlighted,and finally the degree of digitalization negatively affects the financial performance of wholesale and retail industry.