THE IMPACT OF NEW PRODUCT ANNOUNCEMENTS ON FIRM VALUE IN INFORMATION TECHNOLOGY PRODUCING INDUSTRIES: AN EXAMINATION OF INDUSTRY-LEVEL EVOLUTIONARY ERAS

2000 ◽  
Vol 45 (2) ◽  
pp. 144-157 ◽  
Author(s):  
J. HAROLD PARDUE ◽  
ERIC HIGGINS ◽  
TIM BIGGART
2018 ◽  
Vol 13 (6) ◽  
pp. 1635-1655
Author(s):  
Bikram Jit Singh Mann ◽  
Sonia Babbar

Purpose Before introducing new products, companies make announcements regarding the launch of the product which influences stock market yields of the announcing companies. Information content of the new product announcement has never been an exclusive focused stream of research. Therefore, an assessment of the impact of the content characteristics of the new product announcement on the shareholder value and the impact of source credibility (spokesperson) in making such announcements is a major gap in the existing literature. The paper aims to discuss these issues. Design/methodology/approach First, the standard event study methodology has been employed on the sample to measure the abnormal gains/losses accruing to the announcing firms. Second, moderated regression analysis (MRA) is employed to identify the characteristics of the new product announcement and to check the role of the spokesperson in creating shareholder value. Findings The results of the event study indicate that the abnormal returns are generated during the new product announcement. The results of MRA disclose the variables having a positive and a significant influence on the effective returns of the announcing companies. Likewise, the role of the spokesperson has come out brightly as a credible communicator. Originality/value The research provides a direction to the announcing companies regarding the content of the announcement leading to a positive perception among the investing community. Likewise, it also provides direction to the investor community about the characteristics of the announcement content they give weight age in forming a perception of strength in evaluating the new product announcement, to which they are largely unaware.


2021 ◽  
pp. 150-157
Author(s):  
Oleg Fedorovich ◽  
Oleg Uruskiy ◽  
Yurii Pronchakov ◽  
Mikhail Lukhanin

The development of enterprises in strategic industries depends on funding made innovative products that are in demand in the markets for high-tech products. The interest of investors depends on the innovation and competitiveness of the products that the enterprise can produce. The enterprise should make a new, diversified portfolio of orders to attract funding from potential investors. The innovativeness of the product is determined by the novelty of the components in its composition. Therefore, the pressing challenge is to study the innovation of high-tech products based on their component architecture. It makes it possible for investors to assess the possibility of enterprise financing while making a promising diversified portfolio of orders. The study develops a method to justify investments into the new orders that are based on the research of the component architecture of the complex product. The tasks analyzed the product component architecture innovation and investment attractiveness, justify and select the diversified portfolio of orders, simulate and assess orders portfolio feasibility are stated and solved. The paper proposes the component method that makes it possible to evaluate the architecture of the new product in terms of innovation and investment attractiveness. The research of innovation is conducted depending on the composition of the components in the architecture of the whole product. These components can be either new that require a new cycle of creation, or “old” ones, taken from previous experience with the possible adaptation to the technical requirements of the new product. By using the proposed multifactor planning of the experiment, the possible options are considered and the main indicators of the new product are assessed: investment attractiveness, costs, timelines, and risks of order fulfillment. Using lexicographic ordering of alternatives the compromised selection of the optimal option in terms of limited capabilities of the enterprise is conducted. To optimize the diversified portfolio of orders the method of integer (Boolean) programming is used. Investment attractiveness is used as a target function. The restrictions consider allowable costs, timelines, and risks of the orders portfolio fulfillment. In the last part of the paper, the method of simulation agent modeling in a form of applied information technology is used to assess the timeline for order fulfillment and the impact of risks on the feasibility of the diversified portfolio of orders. The novelty of the results is related to the justification of the choice of a diversified portfolio of orders, which in contrast to the already existing approaches, is based on the advanced component architecture of complex products and the simulation of orders portfolio selection considering innovation and investor interests. The proposed method and information technology are planned for the future development of an enterprise that makes it possible to assess the competitiveness of products, as well as the possibility to attract funding.


2019 ◽  
Vol 27 (4) ◽  
pp. 81-98 ◽  
Author(s):  
M. Berk Talay ◽  
M. Billur Akdeniz ◽  
Michael Obal ◽  
Janell D. Townsend

Prior research indicates the importance of new product launches across international markets for firm performance. However, little is known about if, and how, new product launches in international markets drive firm financial value. This study examines the drivers of stock market reactions to a new product introduction in a foreign country, along with the moderating impact of cultural context. Using a sample of 1,154 products in 34 product categories launched in 48 countries between 2011 and 2018, the authors investigate how product characteristics such as product innovativeness and product type affect abnormal stock reactions to a new product launch event. Furthermore, the authors assess the role of the national culture by considering the individualism, uncertainty avoidance, and indulgence characteristics of the country where the new product is launched. Results of a mixed-effects estimation model indicate that product launches in international markets with innovativeness and hedonism characteristics positively affect firm value. The effects of culture are complex and multifarious, providing valuable insights regarding the impact of new product introductions in global markets on firm value.


2008 ◽  
Vol 22 (1) ◽  
pp. 125-159 ◽  
Author(s):  
Li Wang ◽  
Kholekile L. Gwebu ◽  
Jing Wang ◽  
David X. Zhu

Increasingly, organizations are jumping onto the information technology (IT) outsourcing bandwagon in an effort to create value. However, evidence indicating the positive economic consequences of such initiatives has been limited. This study attempts to fill this void by synthesizing the process-oriented research in IT business value literature and the resource-based theory to develop an integrative research framework for assessing the value proposition of IT outsourcing. With a process-oriented lens, the framework suggests that the effects of IT outsourcing are best documented at the process level and hence, it is imperative that one takes into consideration the impact of IT outsourcing on performance at both the process level as well as the firm level. Grounded in the resource-based view, the framework also accounts for the complementary role of firms' core IT capability as a critical condition for the value creation of IT outsourcing. Consistent with the process-oriented prediction, the findings suggest that the positive effects of IT outsourcing appear mostly at the process level, but not at the firm level. Moreover, it is found that the level of business value created by IT outsourcing is contingent on firms' core IT capability. Firms with superior core IT capability are found to enjoy an advantage in leveraging their outsourcing initiatives to enhance firm value.


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