An examination of the long-term business value of investments in information technology

Vincent J. Shea; Kevin E. Dow; Alain Yee Loong Chong; Eric W.T. Ngai

doi:10.1007/s10796-017-9735-5

An examination of the long-term business value of investments in information technology

Vincent J. Shea, Kevin E. Dow, Alain Yee Loong Chong, Eric W.T. Ngai

Nottingham University Business School China

Research output: Journal Publication › Article › peer-review

28 Citations (Scopus)

44 Downloads (Pure)

Abstract

In this paper, we examine the effects of investments in Information Technology (IT) on the long term business values of organizations. The regression discontinuity design is used in this research to examine eight hundred and ten IT investment announcements collected from the period 1982–2007. Our results found that press releases can affect the market value of a firm by possibly providing investors with a better idea of a firm’s current and future operations and strategy. On the other hand, these press releases also appear to attract more transient investors. The attraction of transient investors likely suggests the market believes the IT investing firm is serious about its potential for growth and expansion.

Original language	English
Pages (from-to)	213-227
Number of pages	15
Journal	Information Systems Frontiers
Volume	21
Issue number	1
DOIs	https://doi.org/10.1007/s10796-017-9735-5
Publication status	Published - 15 Feb 2019

Keywords

Business value
Event study
IT investments
Regression discontinuity design

ASJC Scopus subject areas

Software
Theoretical Computer Science
Information Systems
Computer Networks and Communications

Access to Document

10.1007/s10796-017-9735-5

51995Accepted author manuscript, 3.39 MBLicence: Unspecified

Cite this

@article{c8942d048cce405f84799d30ed9e7132,

title = "An examination of the long-term business value of investments in information technology",

abstract = "In this paper, we examine the effects of investments in Information Technology (IT) on the long term business values of organizations. The regression discontinuity design is used in this research to examine eight hundred and ten IT investment announcements collected from the period 1982–2007. Our results found that press releases can affect the market value of a firm by possibly providing investors with a better idea of a firm{\textquoteright}s current and future operations and strategy. On the other hand, these press releases also appear to attract more transient investors. The attraction of transient investors likely suggests the market believes the IT investing firm is serious about its potential for growth and expansion.",

keywords = "Business value, Event study, IT investments, Regression discontinuity design",

author = "Shea, {Vincent J.} and Dow, {Kevin E.} and Chong, {Alain Yee Loong} and Ngai, {Eric W.T.}",

note = "Publisher Copyright: {\textcopyright} 2017, Springer Science+Business Media New York.",

year = "2019",

month = feb,

day = "15",

doi = "10.1007/s10796-017-9735-5",

language = "English",

volume = "21",

pages = "213--227",

journal = "Information Systems Frontiers",

issn = "1387-3326",

publisher = "Springer Netherlands",

number = "1",

}

TY - JOUR

T1 - An examination of the long-term business value of investments in information technology

AU - Shea, Vincent J.

AU - Dow, Kevin E.

AU - Chong, Alain Yee Loong

AU - Ngai, Eric W.T.

PY - 2019/2/15

Y1 - 2019/2/15

N2 - In this paper, we examine the effects of investments in Information Technology (IT) on the long term business values of organizations. The regression discontinuity design is used in this research to examine eight hundred and ten IT investment announcements collected from the period 1982–2007. Our results found that press releases can affect the market value of a firm by possibly providing investors with a better idea of a firm’s current and future operations and strategy. On the other hand, these press releases also appear to attract more transient investors. The attraction of transient investors likely suggests the market believes the IT investing firm is serious about its potential for growth and expansion.

AB - In this paper, we examine the effects of investments in Information Technology (IT) on the long term business values of organizations. The regression discontinuity design is used in this research to examine eight hundred and ten IT investment announcements collected from the period 1982–2007. Our results found that press releases can affect the market value of a firm by possibly providing investors with a better idea of a firm’s current and future operations and strategy. On the other hand, these press releases also appear to attract more transient investors. The attraction of transient investors likely suggests the market believes the IT investing firm is serious about its potential for growth and expansion.

KW - Business value

KW - Event study

KW - IT investments

KW - Regression discontinuity design

UR - http://www.scopus.com/inward/record.url?scp=85011589233&partnerID=8YFLogxK

U2 - 10.1007/s10796-017-9735-5

DO - 10.1007/s10796-017-9735-5

M3 - Article

AN - SCOPUS:85011589233

SN - 1387-3326

VL - 21

SP - 213

EP - 227

JO - Information Systems Frontiers

JF - Information Systems Frontiers

IS - 1

ER -

An examination of the long-term business value of investments in information technology

Abstract

Keywords

ASJC Scopus subject areas

Access to Document

Other files and links

Fingerprint

Cite this