ANALYSIS OF ROA, NPM, AND TATO BEFORE AND AFTER THE OPERATION OF ONLINE APPLICATION-BASED DIGITAL COMPANIES IN RETAIL, TRANSPORTATION, AND MEDIA SECTOR COMPANIES IN THE DISRUPTION ERA

Abstract

Incumbent companies currently have to deal with digital disruption due to the operation of online application-based digital companies offering more efficient transactions and more affordable product prices, encouraging consumers to switch from in-store to online shopping. This research aims to empirically test whether there are significant financial performance differences of incumbent companies before and after the operation of online application-based digital companies, involving the variables of Return on Asset (ROA), Net Profit Margin (NPM), and Total Asset Turnover (TATO), and the population of retail, transportation, and media companies in 2013-2015 and 2017-2019. Paired Sample T-test and Wilcoxon Signed Rank Test are utilized to test normally distributed data and non-normally distributed data, respectively. The research results exhibit that all three variables for retail and transportation companies result in no significant differences while those for media companies result in significant differences before and after the operation of online application-based digital companies.