Digital-related disclosure intensity and short-term financial performance in the FTSE 100: A context-dependent view

This study examines the association between digital-related disclosure and short-term financial performance in the post-Brexit UK. Using textual analysis of FTSE 100 annual reports (2022–2024), we develop a digital disclosure index (DIGINDEX). Panel regressions reveal that higher digital disclosure correlates with suppressed short-term profitability and shareholder returns (EPS), challenging prevailing technological optimism. However, this negative effect is mitigated by high industry regulatory intensity. Our findings suggest digital-related disclosure is a conditional performance signal, necessitating a context-aware strategy. We contribute a non-US perspective to disclosure research, highlighting the critical role of organisational alignment.