The Impact of Digital Technologies on Investment Efficiency: The Moderating Role of Financial Leverage and Technological

Abstract

This study examines the impact of digital technologies on investment efficiency, while testing the moderating role of financial leverage and technological disparity in service companies listed on amman stock exchange. The study adopts content analysis of financial reports, and the sample consists of (34) listed service companies over the period (2005–2024), with a total of (604) firm-year observations. Panel data models are employed and analyzed using STATA, and the random effects model is applied after conducting the required diagnostic tests.                                                                        
The results indicate a negative relationship between digital technologies and investment efficiency, as well as a negative effect of the interaction between digital technologies and financial leverage on investment efficiency.  Regarding technologicla disparity, the indicate that the effect of financial leverage on the relationship between digital technologies and investment efficiency does not differ according to the level of technological disparity among service companies listed at amman stock exchange.

Keywords: Digital Technologies, Investment Efficiency, Financial Leverage, Technological Disparity, Service Companies.