IT Investment Announcements and Market Reaction: The Moderating Impact of R&D Intensity and Firm Growth

2010 ◽  
Author(s):  
Husain Y. Alyousef
Keyword(s):  
Firm Growth ◽  
Market Reaction ◽  
It Investment

The Moderating Effect of Context on the Market Reaction to IT Investments

2006 ◽  
Vol 20 (1) ◽  
pp. 19-44 ◽  
Author(s):  
Wonseok Oh ◽  
Joung W. Ki m ◽  
Vernon J. Richardson
Keyword(s):  
Market Reaction ◽  
Abnormal Returns ◽  
Interaction Effects ◽  
Asset Specificity ◽  
Event Studies ◽  
Growth Potential ◽  
It Investment ◽  
It Investments ◽  
Strategic Role ◽  
Main Effects

This paper examines the moderating effects of firm and IT characteristics on the market reaction to IT investment announcements. A special emphasis has been placed on the potential interaction effects of these two types of variables, since the previous event studies have paid limited attention to the possibility that they interact and jointly alter investors' perceptions in relation to IT investment announcements. Very recently, several authors have noted the importance of interaction effects on theory development for IS research. Their assessments are particularly relevant to IT-value event studies, since the market reaction to IT investment announcements involves a complex process shaped by the interaction of firm and IT characteristics. Based on the previous studies in IS, finance, and accounting, a firm's growth potential and uncertainty are used as proxies to represent firm characteristics, while IT strategic role and asset-specificity of IT are chosen as the variables reflecting IT characteristics. Three other variables (discloser information, firm size, and industry) are included to control for their effects. We develop eight hypotheses based on the examinations of the main and interaction effects of firm and IT characteristic variables on the shareholder's reaction to IT investment announcements. The results of the main effects indicate that a firm's growth prospects, uncertainty, the strategic role of IT, and discloser information are significantly related to cumulative abnormal returns (CARs), while no significant effect was observed for asset-specificity of IT resources. Interestingly, however, interaction effects reveal that the stock market reacts with a discount to announcements of IT investments that are characterized as highly asset-specific in the presence of uncertainty. In addition, the market reacts more favorably to investments with a transformational IT strategic role when the firm faces greater uncertainty. One of our main contributions in this study is to provide a finer level of granularity with regard to the market reaction to IT investments by considering the interaction as well as the main effects of firm and IT characteristics.

DAMPAK PENGUMUMAN PENERAPAN TEKNOLOGI INFORMASI TERHADAP NILAI PERUSAHAAN

2008 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
Mohamad Herdratmoko ◽  
DIDI ACHJARI
Keyword(s):  
Data Analysis ◽  
Event Study ◽  
Capital Market ◽  
Market Reaction ◽  
Stock Exchange ◽  
Economic Benefits ◽  
It Investment ◽  
Productivity Paradox ◽  
It Implementation ◽  
The Relationship

Nowadays, orgonizations tend to invest highty in infprmation technologt However the notion of podrctivity puadox indicates that the investments may not attain intended results. past studies show that the relationship between IT investment and productivity/company perform{mce shows mixed results. This stt$t aims to investigate-market reaction towwds IT implementatibn (mnotn cement in the context of Indonesia.The implementation is expected to provide a signal to tie market since it may have information content of pontential future economic benefits. The current research employs datafrom Inionesia stock Exchange fformerly btown as Bursa Efek Jakarta - BEq. The ziest was used to analyze the data. unfortunately, data analysis results indicate that the average abnormal rehnn before (t-1) and afier (t+t) the doy ofonnouncem9yt has no significant dffirence. The results suggest lhat iT implementition announcement have no- information-iontent for Indonesia's capital market/investor Lesson learnedfrom the current ,iray, is that, in the cgwext of Indonesia, IT implementation is not perceived tolead to produc"tivity improvement.Keywords : e-business, IT implementation, event study, productivity paradox, Jakarta Stock Exchange (Bursa Efek Jakarh), market reaction, IT investment.

The Effect of Taxation and Corruption on Firm Growth: An Empirical Investigation for Vietnam

2016 ◽  
pp. 5-29
Author(s):  
Bich Le Thi Ngoc
Keyword(s):  
International Development ◽  
Firm Growth ◽  
Empirical Investigation ◽  
Manufacturing Firms ◽  
Economic Management ◽  
Tax Rate ◽  
Percentage Point Increase ◽  
Percentage Points ◽  
Point Increase ◽  
The Impact

The aim of this study is to analyze empirically the impact of taxation and corruption on the growth of manufacturing firms in Vietnam. The study employed pooled OLS estimation and then instrument variables with fixed effect for the panel data of 1377 firms in Vietnam from 2005 to 2011. These data were obtained from the survey of the Central Institute for Economic Management and the Danish International Development Agency. The results show that both taxation and corruption are negatively associated with firm growth measured by firm sales adjusted according to the GDP deflator. A one-percentage point increase in the bribery rate is linked with a reduction of 16,883 percentage points in firm revenue, over four and a half times bigger than the effect of a one-percentage point increase in the tax rate. From the findings of this research, the author recommends the Vietnam government to lessen taxation on firms and that there should be an urgent revolution in anti-corruption policies as well as bureaucratic improvement in Vietnam.

A Study on the Market Reaction of Airlines in Response to Changes in Their External Environment

2020 ◽  
Vol 10 (2) ◽  
pp. 131-150
Author(s):  
Hyun-Woo Lee ◽  
◽  
Jeong-Yeon Kim
Keyword(s):  
Market Reaction ◽  
External Environment

THE DYNAMIC EFFECT OF CUSTOMER EQUITY ACROSS FIRM GROWTH

2014 ◽  
Author(s):  
Tae Ho Song ◽  
◽  
Ji Yoon Kim
Keyword(s):  
Firm Growth ◽  
Dynamic Effect ◽  
Customer Equity

Pathways to Profits: Identifying Separate Channels of Small Firm Growth through Business Training

2016 ◽  
Author(s):  
Stephen J. Anderson ◽  
Rajesh Chandy ◽  
Bilal Zia
Keyword(s):  
Small Firm ◽  
Firm Growth ◽  
Business Training

Law, Finance, and Firm Growth

CFA Digest ◽  
1999 ◽  
Vol 29 (2) ◽  
pp. 72-73
Author(s):  
Roger Ignatius
Keyword(s):  
Firm Growth

Do Banks or VCs Spur Small Firm Growth?

CFA Digest ◽  
2016 ◽  
Vol 46 (10) ◽  
Author(s):  
Derek W. Johnson
Keyword(s):  
Small Firm ◽  
Firm Growth

Market Reaction of Share Prices to the Change of the CBR Key Rate: Industrial Analysis

2020 ◽  
Vol 16 (2) ◽  
pp. 65-79
Author(s):  
E. M. Rogova ◽  
D. V. Novichkov
Keyword(s):  
Market Reaction ◽  
Share Prices
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