The Interrelationships Between Information Technology Spending, CEO Equity Incentives, and Firm Value

2014 ◽  
Vol 28 (2) ◽  
pp. 41-65 ◽  
Author(s):  
Adi Masli ◽  
Vernon J. Richardson ◽  
Juan Manuel Sanchez ◽  
Rodney E. Smith
Keyword(s):  
Information Technology ◽  
Firm Value ◽  
Ceo Compensation ◽  
It Governance ◽  
Business Value ◽  
Risky Asset ◽  
Equity Compensation ◽  
Equity Incentives ◽  
Compensation Incentives

ABSTRACT We examine the interrelationships between information technology spending, CEO equity compensation incentives, and firm value. We present two related pieces of evidence. First, we find that CEO equity incentives are associated with IT spending, suggesting that CEOs with higher incentives are more likely to invest in a risky asset such as IT. Second, we find that the association between IT spending and business value is stronger for firms that grant CEOs higher equity incentives. Our study contributes to the CEO compensation and IT governance literatures.

Firm Performance in the Hospitality Industry: Do CEO Attributes and Compensation Matter?

2018 ◽  
Vol 43 (2) ◽  
pp. 272-282 ◽  
Author(s):  
Yuan Li ◽  
Manisha Singal
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Firm Value ◽  
Hospitality Industry ◽  
Ceo Compensation ◽  
Past Research ◽  
Firm Financial Performance ◽  
Equity Compensation ◽  
And Gender ◽  
Ceo Attributes

Past research has shown mixed results regarding the role CEO compensation plays in influencing firm financial performance in the hospitality industry. To explore this relationship further, we concomitantly examine the role of compensation and CEO attributes like education, age, tenure, functional background, and gender on firm financial performance. Our analyses are based on secondary and hand-collected data from a large and comprehensive sample of U.S. publicly traded hospitality firms. The results from panel data analyses show that CEO cash compensation is positively related to return on assets, while equity compensation is unrelated to firm performance. We further find that when CEO compensation and attributes are jointly examined, CEO compensation has a relatively lower impact on firm performance than CEO attributes do. The results imply that the hospitality industry may want to reconsider its compensation practices in order to better align the interests of managers and shareholders and motivate managers to maximize firm value.

A Framework for Research on Information Technology Governance in SMEs

2017 ◽  
pp. 53-81 ◽  
Author(s):  
François Bergeron ◽  
Anne-Marie Croteau ◽  
Sylvestre Uwizeyemungu ◽  
Louis Raymond
Keyword(s):  
Information Technology ◽  
Conceptual Framework ◽  
It Governance ◽  
Business Value ◽  
Technology Governance ◽  
Information Technology Governance ◽  
It Resources ◽  
Research Propositions ◽  
Alternative Theories

The need to effectively manage IT resources such that they enhance the business value of firms makes IT Governance (ITG) an important issue for both IS researchers and practitioners. The purpose of this paper is to build a conceptual framework for ITG in small and Medium-Sized Enterprises (SMEs). The authors first analyze the main theories applied in ITG research, and confront them with the specificities of SMEs. The authors then highlight the limits of those theories in SMEs context and discuss adaptations needed or alternative theories in such context. The resulting framework is then applied to generate a set of six research propositions on ITG in SMEs.

Improving the Business Value of IS

2014 ◽  
pp. 67-81
Author(s):  
Sunghun Chung
Keyword(s):  
Information Technology ◽  
Supply Chain ◽  
Information Systems ◽  
Firm Value ◽  
Market Performance ◽  
Business Value ◽  
It Outsourcing ◽  
Future Research ◽  
Firm Boundaries ◽  
Further Development

This review surveys recent study on the business value of Information Systems (IS). The topics covered include theoretical and empirical evidence on the business value of IS, the productivity using Information Technology (IT), the firm value with IT, IT and firm boundaries, IT outsourcing, and supply chain with IT. This work critically reviews the growing literature on improving market performance through IS, discusses various perspectives, raises conceptual and empirical concerns, underscores challenges for further development of this literature, and provides directions for future research.

A Framework for Research on Information Technology Governance in SMEs

2020 ◽  
pp. 1567-1588 ◽  
Author(s):  
François Bergeron ◽  
Anne-Marie Croteau ◽  
Sylvestre Uwizeyemungu ◽  
Louis Raymond
Keyword(s):  
Information Technology ◽  
Conceptual Framework ◽  
It Governance ◽  
Business Value ◽  
Technology Governance ◽  
Information Technology Governance ◽  
It Resources ◽  
Research Propositions ◽  
Alternative Theories

The need to effectively manage IT resources such that they enhance the business value of firms makes IT Governance (ITG) an important issue for both IS researchers and practitioners. The purpose of this paper is to build a conceptual framework for ITG in small and Medium-Sized Enterprises (SMEs). The authors first analyze the main theories applied in ITG research, and confront them with the specificities of SMEs. The authors then highlight the limits of those theories in SMEs context and discuss adaptations needed or alternative theories in such context. The resulting framework is then applied to generate a set of six research propositions on ITG in SMEs.

IT Governance Landscape: Toward Understanding the Effective IT Governance Decision-Making

2015 ◽  
Vol 2 (11) ◽  
pp. 5 ◽  
Author(s):  
MOHAMMED ALAA H. ALTEMIMI ◽  
MOHAMAD SHANUDIN ZAKARIA
Keyword(s):  
Decision Making ◽  
Information Technology ◽  
It Governance ◽  
Business Value ◽  
Executive Management ◽  
Business Decision ◽  
Strategic Objectives ◽  
It Business Value ◽  
Considerable Work

In recent years, IT governance has made it possible for organizations to meet and realize their IT business value, and mitigate the risk associated with IT to fulfill different strategic objectives. However, the challenges for effectively governing an organization’s Information Technology (IT) remain a major concern for the Board and executive management in many organizations today. A number of researchers have attempted to develop holistic IT governance frameworks but there is still much room for improvement in fusing IT governance into one process. More considerable work is needed to further the understanding of IT governance, and to develop a successful holistic instrument of IT governance. The aim of this paper is to provide an understanding of IT/ Business decision-making based on IT governance perspective and offers more precise insights into how the decision of IT and IT governance correlate to investment. Most organizations are currently searching for methods and practices for the solution of decision-making, optimization of IT processes with a key of IT governance component. We proposed an instrument of ITG decision-making called ‘Effective ITG landscape’. It can help managers to have a good understanding of IT governance and provides guidance for IT governance implementing.

Business Value through Controlled IT: Toward An Integrated Model of IT Governance Success and Its Impact

2014 ◽  
Vol 29 (2) ◽  
pp. 128-147 ◽  
Author(s):  
Arne Buchwald ◽  
Nils Urbach ◽  
Frederik Ahlemann
Keyword(s):  
Information Technology ◽  
It Governance ◽  
Integrated Model ◽  
Business Value ◽  
Decision Makers ◽  
Complete Understanding ◽  
Holistic Model ◽  
Multinational Organizations ◽  
Regulatory Pressure ◽  
The Impact

Owing to increasing regulatory pressure and the need for aligned information technology (IT) decisions at the interface of business and IT, IT governance (ITG) has become important in both academia and practice. However, knowledge of integrating the determinants and consequences of ITG success remains scarce. Although some studies investigate individual aspects of ITG success and its impact, none combine these factors into a comprehensive and integrated model that would lead to a more complete understanding of the ITG concept. To address this gap, our research aims at understanding what factors influence and result from successful ITG, and at determining how they can be translated into a model to explain ITG success and the impact thereof. Therefore, we conducted interviews with 28 IT decision makers in 19 multinational organizations headquartered in Europe. Our study synthesizes the fragmented previous research, provides new empirical insights gathered on the basis of a clear ITG conceptualization, and suggests three innovative constructs heretofore not related to ITG. Moreover, we elucidate in a holistic model the factors that make ITG successful, how ITG contributes to an IT organization's success, and how it eventually unfolds throughout the overall organization. The resulting model allows organizational decision makers to develop an effective ITG implementation and to explain the implications of successful ITG, thus providing a justification for the respective investments.

The Aftermath of Information Technology Outsourcing: An Empirical Study of Firm Performance Following Outsourcing Decisions

2008 ◽  
Vol 22 (1) ◽  
pp. 125-159 ◽  
Author(s):  
Li Wang ◽  
Kholekile L. Gwebu ◽  
Jing Wang ◽  
David X. Zhu
Keyword(s):  
Information Technology ◽  
Firm Value ◽  
Business Value ◽  
It Outsourcing ◽  
Firm Level ◽  
It Capability ◽  
Positive Effects ◽  
Process Oriented ◽  
The Impact ◽  
Process Level

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.

CEO Deal-Making Activity, CEO Compensation and Firm Value

2010 ◽  
Author(s):  
Eliezer M. Fich ◽  
Laura T. Starks ◽  
Adam S. Yore
Keyword(s):  
Firm Value ◽  
Ceo Compensation ◽  
Deal Making
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