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

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

Authors

Vincent J. Shea

Kevin E. Dow

Alain Yee-Loong Chong

Eric W. T. Ngai



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.

Journal Article Type Article
Publication Date Feb 2, 2017
Journal Information Systems Frontiers
Print ISSN 1387-3326
Electronic ISSN 1387-3326
Publisher Humana Press
Peer Reviewed Peer Reviewed
APA6 Citation Shea, V. J., Dow, K. E., Chong, A. Y., & Ngai, E. W. T. (2017). An examination of the long-term business value of investments in information technology. Information Systems Frontiers, doi:10.1007/s10796-017-9735-5
DOI https://doi.org/10.1007/s10796-017-9735-5
Keywords IT investments; Regression discontinuity design; Event study; Business value
Publisher URL https://link.springer.com/article/10.1007%2Fs10796-017-9735-5
Copyright Statement Copyright information regarding this work can be found at the following address: http://eprints.nottingh.../end_user_agreement.pdf

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Copyright Statement
Copyright information regarding this work can be found at the following address: http://eprints.nottingham.ac.uk/end_user_agreement.pdf



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