Information technology intensity and the industry cost of equity capital

Kevin E. Dow, Joseph Yu, Vincent J. Shea

    Research output: Chapter in Book/Conference proceedingConference contributionpeer-review

    Abstract

    The cost of equity capital has been an important topic to both academics and practitioners. In this study, we examine the effect information technology (IT) intensity on the industry cost of equity capital. Findings generally support the idea that IT intensity is a significant factor driving industry cost of equity capital. Further, an interaction between IT intensity and time suggests that IT intensity has decreased the industry cost of equity capital over time. This paper contributes to the literature by furthering our understanding the effects that IT has on a firm's performance by examining via the effect on the industry cost of equity capital.

    Original languageEnglish
    Title of host publication19th Americas Conference on Information Systems, AMCIS 2013 - Hyperconnected World
    Subtitle of host publicationAnything, Anywhere, Anytime
    Pages2050-2057
    Number of pages8
    Publication statusPublished - 2013
    Event19th Americas Conference on Information Systems, AMCIS 2013 - Chicago, IL, United States
    Duration: 15 Aug 201317 Aug 2013

    Publication series

    Name19th Americas Conference on Information Systems, AMCIS 2013 - Hyperconnected World: Anything, Anywhere, Anytime
    Volume3

    Conference

    Conference19th Americas Conference on Information Systems, AMCIS 2013
    Country/TerritoryUnited States
    CityChicago, IL
    Period15/08/1317/08/13

    Keywords

    • Cost of equity capital
    • Fama-french three factor model
    • IT intensity

    ASJC Scopus subject areas

    • Computer Networks and Communications
    • Computer Science Applications
    • Information Systems
    • Library and Information Sciences

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