The Effect of Digitalization Strategy and Corporate Governance on Transportation Firms' Financial Performance

Purpose: This study examines the effects of digitalization strategy and good corporate governance on the financial performance of transportation sector companies listed on the Indonesia Stock Exchange. 
Research Methodology: This study uses a quantitative approach based on secondary data obtained from the annual reports of 12 transportation companies during 2020–2024, resulting in 60 observations. Data analysis was conducted using multiple linear regression with SPSS to test the relationship between the digitalization strategy, institutional ownership, managerial ownership, and financial performance. 
Results: The findings reveal that the digitalization strategy has a significant negative effect on financial performance. Institutional ownership has no significant effect, whereas managerial ownership has a significant positive effect on financial performance. The model explains 14% of the variation in financial performance (R² = 0.140). 
Conclusions: The study concludes that digitalization in the transportation sector has not yet fully contributed to improved financial performance, while internal governance through managerial ownership plays a more effective role than institutional ownership. 
Limitations: This study is limited to transportation companies listed on the Indonesia Stock Exchange and only covers the 2020–2024 period, which may limit its generalizability. 
Contributions: This study contributes to the literature on digital transformation and corporate governance by providing empirical evidence from the Indonesian transportation sector.