THE VALUE RELEVANCE OF ANNOUNCEMENTS OF TRANSFORMATIONAL INFORMATION TECHNOLOGY INVESTMENTS.

Author List: Dehning, Bruce; Richardson, Vernon J.; Zmud, Robert W.;
MIS Quarterly, 2003, Volume 27, Issue 4, Page 637-656.
In this paper, we examine the influence of IT strategic role to extend the findings of Im et al. (2001), Chatterjee et al. (2002) and Dos Santos et al. (1993). Specifically, we demonstrate that IT strategic role can explain how IT investments in each of the IT strategic roles might affect the firm's competitive position and ultimately firm value. We find positive, abnormal returns to announcements of IT investments by firms making transformative IT investments, and with membership in industries with transform IT strategic roles. The results of previous research are not found to be significant when IT strategic role is included as an explanatory variable. These results provide support for the value of capturing the IT strategic role of a firm's IT-related competitive maneuvering in studies striving to understand the conditions under which IT investments are likely to produce out-of-the-ordinary, positive returns.
Keywords: event study; IT investment; IT strategic role; stock market reaction
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#123 0.277 information strategy strategic technology management systems competitive executives role cio chief senior executive cios sis support organization officer position ceos
#176 0.267 e-commerce value returns initiatives market study announcements stock event abnormal companies significant growth positive using methodology investments period time initiative
#220 0.151 research study different context findings types prior results focused studies empirical examine work previous little knowledge sources implications specifically provide
#271 0.150 technology investments investment information firm firms profitability value performance impact data higher evidence diversification industry payoff return findings decisions greater
#218 0.077 role roles gender differences women significant play age men plays sample differ played vary understand critical greater implications relatively offered