scholarly journals Information Technology Investments And Aggregate Productivity

2016 ◽  
Vol 32 (4) ◽  
pp. 995-1008
Author(s):  
Paul Moon Sub Choi ◽  
Hakyoul Choe
Keyword(s):  
Information Technology ◽  
Financial Markets ◽  
Capital Allocation ◽  
Aggregate Productivity ◽  
It Investments ◽  
Relative Contribution ◽  
Information Technology Investments ◽  
Country Analysis ◽  
Cross Country ◽  
Empirical Implications

Earlier studies have shown positive and large impacts of information technology (IT) investments on aggregate products in the nascent stage. However, this causal inference may not be applicable in the adult regime with a diminishing marginal productivity. We conduct a 52 cross-country analysis on a 15 year data of IT capital stocks, rather than flows as used in the literature. Controlling for country and time effects, the empirical implications of our study are as follows: First, the IT investment intensity positively affects aggregate productivity controlling for labor, assets, and financial markets. Second, the relative contribution has decreased as the law of diminishing returns predicts. Lastly, software and services have gained more capital allocation on relative terms in exchange for less on hardware. This finding contrasts with the existing argument that the hardware-software mix is time-constant due to substitution.

Modeling Customer-Related IT Diffusion

2011 ◽  
pp. 251-263
Author(s):  
Shana L. Dardan ◽  
Ram L. Kumar ◽  
Antonis C. Stylianou
Keyword(s):  
Information Technology ◽  
Data Collection ◽  
Diffusion Model ◽  
Technology Diffusion ◽  
Empirical Support ◽  
Event Studies ◽  
It Investments ◽  
It Diffusion ◽  
Information Technology Investments ◽  
Bayesian Prior

This study develops a diffusion model of customer-related IT (CRIT) based on stock market announcements of investments in those technologies. Customer-related IT investments are defined in this work as information technology investments made with the intention of improving or enhancing the customer experience. The diffusion model developed in our study is based on data for the companies of the S&P 500 and S&P MidCap 400 for the years of 1996-2001. We find empirical support for a sigmoid diffusion model. Further, we find that both the size and industry of the company affect the path of CRIT diffusion. Another contribution of this study is to illustrate how data collection techniques typically used for fi- nancial event studies can be used to study information technology diffusion. Finally, the data collected for this study can serve as a Bayesian prior for future diffusion forecasting studies of CRIT.

Revisiting the Impact of Information Technology Investments on Productivity

2011 ◽  
pp. 296-322
Author(s):  
Myung Ko ◽  
Jan Guynes Clark ◽  
Daijin Ko
Keyword(s):  
Information Technology ◽  
Predictor Variable ◽  
Value Added ◽  
It Investments ◽  
Interaction Variable ◽  
Information Technology Investments ◽  
Technology Investments ◽  
The Impact ◽  
The Relationship

This article revisits the relationship between IT and productivity, and investigates the impact on information technology (IT) investments. Using the MARS techniques, we show that although IT Stock is the greatest predictor variable for productivity (Value Added), it is only significant as an interaction variable, combined with Non-IT Capital, Non-IT Labor, Industry, or Size.

The Valuation of Information Technology Investments by Real Options Analysis

2009 ◽  
Vol 12 (04) ◽  
pp. 611-628 ◽  
Author(s):  
Kuo-Jung Lee ◽  
David S. Shyu ◽  
Miao-Ling Dai
Keyword(s):  
Information Technology ◽  
Real Options ◽  
Cost Savings ◽  
Price Volatility ◽  
Closed Form Expression ◽  
Optimal Timing ◽  
Real Options Analysis ◽  
It Investments ◽  
Output Price ◽  
Information Technology Investments

This study establishes a dynamic model under real options analysis to analyze the optimal timing decision of information technology (IT) investments when the output price for firms is stochastic and benefits of IT investments are arisen from the increasing output price, increasing sale, and cost savings. We derive the closed form expression of the timing of IT investments and furthermore prove that IT investments rise at an increasing rate in economic booms and fall in economic busts. This study finds that increasing (decreasing) price volatility will delay (advance) the timing of IT investments. Increasing IT investments, however, may not delay the timing of IT investments. In addition, the decreasing (increasing) efficiency and increasing (decreasing) depreciation of IT investments will delay (advance) the timing of IT investments.

scholarly journals Information technology investments and supply chain governance

2014 ◽  
Vol 18 (2) ◽  
pp. 217-235 ◽  
Author(s):  
Pietro Cunha Dolci ◽  
Antonio Carlos Gastaud Maçada
Keyword(s):  
Information Technology ◽  
Supply Chain ◽  
Supply Chain Performance ◽  
Extensive Literature ◽  
Final Model ◽  
It Investments ◽  
Information Technology Investments ◽  
Supply Chain Governance ◽  
And Performance ◽  
Shed Light

The aim of this research is to propose a model that relates information technology (IT) investments, supply chain governance (SCG) and performance together. For this purpose, a pilot study involving both a qualitative and a quantitative stage was conducted. The qualitative analysis, consisting of an extensive literature review and two case studies conducted in six major, globally-relevant Brazilian companies, led to the development of an initial model. This model was refined during the quantitative stage that involved 38 executives from large national companies. IT was found to be one of the main drivers of SCG influencing companies' supply chain performance. The final model consists of 5 constructs and 26 elements. Regarding the SCG constructs: (a) a new element 'formal contracts', emerged in the 'contractual SCG' construct; (b) the element 'cooperation' was not confirmed in the 'relational SCG' construct; (c) the element 'transparency' was considered an important element in the 'transactional SCG' construct. Five new elements emerged in the 'IT investment' construct. Market aspects were highlighted as being relevant in the 'supply chain performance' construct. Thus, the model includes elements that can be analyzed in order to shed light on how IT investments influence SCG and supply chain performance.

scholarly journals FINANCIAL CONGLOMERATE IDENTIFICATION BY FINANCIAL MARKETS REGULATORS: CASE OF DEVELOPED AND EMERGING MARKET ECONOMIES

2018 ◽  
Author(s):  
Natalia Kuznetsova ◽  
Zhanna Pisarenko ◽  
Liudmila Lobanova
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Emerging Market ◽  
Financial Conglomerates ◽  
Anal Ysis ◽  
Conceptual Apparatus ◽  
Financial Conglomerate ◽  
The World ◽  
Country Analysis ◽  
Cross Country

The paper examines financial conglomerates as an innovative form of integration from different sec-tors of the world financial market. The authors reveal their features, advantages and risks. The goal of the paper is an empirical cross-country analysis of financial conglomerate identification by finan-cial markets regulators. There is no common approach to such a consolidated entity as financial con-glomerate among both researchers and regulators. The blurring of the dividing lines between financial sectors is of great importance too. The development of a conceptual apparatus, the theory and anal-ysis of a financial conglomerate has become of considerable importance.

Use of Information Technology Investment Management to Manage State Government Information Technology Investments

2009 ◽  
pp. 1-22
Author(s):  
David Van Over
Keyword(s):  
Information Technology ◽  
State Government ◽  
Significant Proportion ◽  
Government Information ◽  
It Investments ◽  
Technology Investment ◽  
Information Technology Investments ◽  
Information Technology Investment ◽  
High Level ◽  
Business Requirements

The expenditures of funds on IT has continued to expand and a significant proportion of the expenditures are hidden, unaccounted for, or never evaluated in terms of the business value derived from the expenditure. This chapter focuses on the methods and means of creating a linkage between business requirements and the IT investments that can address those requirements. An ITIM framework is proposed, which addresses three key elements of ITIM: what decisions are to be made, who should make the decisions, and how decisions are to be made and monitored. ITIM is a management process that provides for the identification (pre selection), selection, control, and evaluation of business driven IT investments across the investment lifecycle. ITIM uses structured processes to minimize risks and maximize return on investments. Additionally, a high-level ITIM implementation plan is discussed.

The Effects of Corporate Governance Mechanisms on Investment In Information Technology: Evidence from Tunisan Banks

2017 ◽  
Vol 7 (2) ◽  
pp. 472
Author(s):  
Nourhene Blibech ◽  
Mohamed Tahar Rajhi
Keyword(s):  
Information Technology ◽  
Corporate Governance ◽  
Ownership Structure ◽  
Audit Committee ◽  
Institutional Investor ◽  
Governance Mechanisms ◽  
It Investments ◽  
Corporate Governance Mechanisms ◽  
Information Technology Investments ◽  
The Board Of Directors

The aim of this paper is to investigate the influence of internal corporate governance mechanisms, the ownership structure and the board of directors, on the intensity of information technology investments of Tunisian banks during the period 2005 to 2104. Empirical evidence shows that ownership concentration of the first three shareholders and institutional investor ownership are significantly positive on IT investments, foreigner investors’ share in Tunisian banks has a negative and a significant impact. Board size has a negative and a significant impact on the intensity of IT investments. However, independence of the directors and the presence of an audit committee in the board have a positive and a significant effect.

scholarly journals Analysis And Measurement Of The Impact Of Information Technology Investments On Performance In Mexican Companies: Development Of A Model To Manage The Processes, Projects And Information Technology Infrastructure And Its Impact On Profitability

2011 ◽  
Vol 6 (10) ◽  
Author(s):  
Ricardo Sierra Martínez ◽  
Carlos Miguel Barber Kuri
Keyword(s):  
Information Technology ◽  
Internal Rate Of Return ◽  
It Infrastructure ◽  
Technology Infrastructure ◽  
It Investments ◽  
Information Technology Infrastructure ◽  
Information Technology Investments ◽  
Company Directors ◽  
The Impact ◽  
Australian Universities

In Mexico, companies invest enormous resources in information technology (IT), with little evidence of the latters effectiveness. Company directors struggle with gauging how effective or ineffective making these investments truly is, given the lack of instruments of measurement by which to establish, for instance, an internal rate of return or a period of recovery on investments. There is also no evidence by which to link IT investment to improvements in a companys performance or profitability. While several American and Australian universities have developed studies that address these issues, for the most part these are limited to their respective countries and in some cases to Canada and Europe. Thus, there is a lack of empiric evidence in the Mexican scenario. Being able to analyze and measure the impact of IT investments is an important first step into making these resources more efficient. Based on the following analyses, one will identify the variables that intervene in successful and/or unsuccessful management of processes and projects, as well as in the administration of IT infrastructure.

scholarly journals The Impact Of Information Technology Investments On Managerial Decision Making: Evidence From Dividend Payout

2011 ◽  
Vol 18 (3) ◽  
Author(s):  
T. Selwyn Ellis ◽  
K. Michael Casey ◽  
Hani I. Mesak
Keyword(s):  
Information Technology ◽  
Agency Cost ◽  
Font Size ◽  
It Investment ◽  
Managerial Decision ◽  
Dividend Payout ◽  
It Investments ◽  
Managerial Decisions ◽  
Information Technology Investments ◽  
The Impact

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="mso-bidi-font-size: 10.0pt;"><span style="font-size: x-small;"><span style="font-family: Times New Roman;">Investments in Information Technology (IT) are an increasing part of organizational expenditures in spite of the fact that there is little evidence in the existing literature that suggests these investments are related to the organization&rsquo;s performance. The uncertainty of IT investment payoff should be reflected in other managerial decisions. This research examines Rozeff's (1982) agency cost/transaction cost tradeoff model to determine if IT investments are related to dividend payout ratios for an organization. A dividend payout model including an IT investment variable is estimated. The estimation results suggest that a significant positive relationship exists between dividend payout and a firm&rsquo;s IT investments.</span></span></span></p>

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