Financial Appraisal and the IS/IT Investment Decision Making Process

1998 ◽  
Vol 13 (1) ◽  
pp. 3-14 ◽  
Author(s):  
Joan Ballantine ◽  
Stephanie Stray
Keyword(s):  
Decision Making ◽  
Information Technology ◽  
Capital Investment ◽  
Investment Decision ◽  
Decision Making Process ◽  
It Investment ◽  
It Investments ◽  
Investment Appraisal ◽  
Investment Decision Making ◽  
Financial Appraisal

This paper explores the techniques used by organizations to appraise Information Systems (IS)/Information Technology (IT) investments, and concentrates, in particular, on techniques of capital investment appraisal. We draw on relevant studies reported in both the accounting and finance, and the IS literature, which have addressed their usage. Where possible comparisons are drawn between both sets of literatures. The results of a survey that specifically examined IS/IT investment appraisal practices of a sample of UK companies is also presented. Among the issues discussed include the extent to which capital investment appraisal techniques are used to appraisal investments, the importance of the techniques used and the problems attendant on the decision making process.

scholarly journals Investment analysis of plum brandy production – methodology approach

2008 ◽  
Vol 2 (1-2) ◽  
pp. 103-105
Author(s):  
Lari Hadelan
Keyword(s):  
Decision Making ◽  
Planning Process ◽  
Investment Decision ◽  
Investment Analysis ◽  
Decision Making Process ◽  
Investment Appraisal ◽  
Financial Decision ◽  
Plum Brandy

The major prerequisite of successful entrepreneurship venture is quality of decision-making process. Decision in investment is the most important financial decision. It is a part of both long-term business planning process and strategic business definition. Using available investment appraisal methods, entrepreneur should make positive or negative investment decision. Within the development of the economic theory and the practice many of methods made decision-making process rational and gave the scientific and practical base for successful project evaluation.

Bayesian Belief Networks in IT Investment Decision Making

2017 ◽  
pp. 75-107 ◽  
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Bayesian Belief Networks ◽  
Influence Diagrams ◽  
Belief Networks ◽  
It Investment ◽  
Investment Decision Making ◽  
Availability Modeling

This section aims at describing the concept of Bayesian Belief Networks (BBN), building principles and application of BBN and influence diagrams, as well as the reasons why BBN are considered an adequate tool for IS availability modeling.

Assessing the Value of Information Technology Investment to Firm Performance

2002 ◽  
pp. 257-278
Author(s):  
Qing Hu ◽  
Robert T. Plant
Keyword(s):  
Information Technology ◽  
Firm Performance ◽  
Financial Performance ◽  
Capital Investment ◽  
Large Scale ◽  
Performance Data ◽  
It Investment ◽  
Firm Level ◽  
It Investments ◽  
And Performance

The promise of increased competitive advantage has been the driving force behind the large-scale investment in information technology (IT) over the last three decades. There is a continuing debate among executives and academics as to the measurable benefits of this investment. The return on investment (ROI) and other performance measures reported in the academic literature indicate conflicting empirical findings. Many previous studies have based their conclusions on the statistical correlation between IT capital investment and firm performance data of the same time period. In this study we argue that the causal relationship between IT investment and firm performance could not be reliably established through concurrent IT and performance data. We further submit that it would be more convincing to infer causality if the IT investments in the preceding years are significantly correlated with the performance of a firm in the subsequent year. Using the Granger causality models and three samples of firm-level financial data, we found no statistical evidence that IT investments have caused the improvement of financial performance of the firms in the samples. On the contrary, the causal models suggest that improved financial performance over consecutive years may have contributed to the increase of IT investment in the subsequent year. Implications of these findings as well as directions for future studies are discussed.

Role of Financial Statement in Investment Decision Making Process

2020 ◽  
Vol 9 (1) ◽  
pp. 105-108
Author(s):  
Suraj Bhujel
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Financial Statements ◽  
Vital Role ◽  
Financial Statement ◽  
Quality Information ◽  
Decision Making Process ◽  
Investment Decision Making

It is believed that financial statements are the key documents for any organizations for the investment decision making. Investment decision making depends upon the quality information obtained by the various sources and it is concluded in this research which is based on the findings that financial statement plays a vital role in investment decision making and recommends that no investment decision should be taken without the consideration of a company’s financial statements.

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