Figure 6.
Three line plots illustrate the quarterly effects of digital transformation on firm performance. The top left plot shows the effect on revenue drop for front of house digital transformation, comparing low front of house digital transformation firms and high front of house digital transformation firms from 2018 Q 3 to 2020 Q 2. The top right plot presents the effect on profit drop for back of house digital transformation, contrasting low back of house digital transformation firms and high back of house digital transformation firms over the same period. The bottom plot depicts the effect on stock price drop for overall digital transformation, comparing low digital transformation firms and high digital transformation firms from 2018 Q 2 to 2020 Q 1. In all three plots, a vertical dashed line marks 2020 Q 1, indicating the onset of the shock period. Together, the three plots highlight differences in the magnitude and timing of performance drops between firms with low and high levels of digital transformation across revenue, profitability, and stock price outcomes.Parallel trend test