Abstract:

The main goal of this paper is to analyse how digitalization affects performance of 100 largest companies that operated during the 2014 – 2018 period in Croatia. For this purpose, a regression analysis is employed. Various firm-specific variables including digitalization, size of the firm, leverage, age and liquidity serve as independent variables whereas net profit margin (NPM) is employed as dependent variable. The results of the analysis reveal that performance of Croatian largest firms is influenced by digitalization, leverage and liquidity. Specifically, digitalization positively impacts performance as well as liquidity whereas leverage of the firm has negative impact on performance.