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

29 Citations (Scopus)

59 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

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10.1007/s10796-017-9735-5

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Cite this

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

Abstract

Keywords

ASJC Scopus subject areas

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