Econometric analysis of factors affecting the financial stability of joint-stock companies in the context of digitalization

This study conducts an econometric analysis of the factors influencing the financial stability of joint-stock companies in Uzbekistan under digitalization conditions, focusing on key indicators such as Return on Assets (ROA) and Return on Equity (ROE). Utilizing panel data from three major joint-stock companies “Uzagrolizing” “Khovrenko Samarqand Vino” and “Shahrisabz Vino” over the period 2015–2024, the study employs Pooled OLS, Fixed Effects Model (FEM), and Random Effects Model (REM) to examine the impact of digitalization-related variables, including IT investments, digital infrastructure, online sales volume, and financial leverage metrics, on financial stability. The results, based on the REM model, reveal that digitalization significantly enhances financial performance, with a 1% increase in IT investments boosting ROA by 2.46% and ROE by 2.03%, and digital infrastructure increasing ROA by 1.372% and ROE by 0.8%. Online sales volume shows a weaker but positive effect, while high debt ratios negatively impact both ROA (-0.479) and ROE (-0.651), highlighting the importance of prudent debt management. The models explain approximately 73.9% of ROA and 73.3% of ROE variations, indicating strong explanatory power. The findings underscore the pivotal role of digital transformation in strengthening financial stability and provide actionable insights for joint-stock companies to optimize digital investments and financial structures to enhance long-term competitiveness and resilience in a rapidly digitalizing economy.