THE MORE, THE MERRIER? HOW THE NUMBER OF PARTNERS IN A STANDARD-SETTING INITIATIVE AFFECTS SHAREHOLDER'S RISK AND RETURN1.

Author List: Aggarwal, Nitin; Dai, Qizhi; Walden, Eric A.;
MIS Quarterly, 2011, Volume 35, Issue 2, Page 447-A5.
The article presents research on collaboration between business enterprises to set standards for information technology examining if such cooperation reduces the financial risks faced by stockholders of the individual companies involved. It was found that an increase in the number of companies involved in cooperation on standards decreased the market risk on stockholder rate of return as measured by beta, but increased the idiosyncratic risk to the individual firms' returns. This indicates companies elected to participate in a large standardization project obtain a reduction in abnormal returns on stocks.
Keywords: Standard; standardization; standard-setting; event study; returns on IT investment; risk of IT investment
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#176 0.200 e-commerce value returns initiatives market study announcements stock event abnormal companies significant growth positive using methodology investments period time initiative
#40 0.155 increased increase number response emergency monitoring warning study reduce messages using reduced decreased reduction decrease act sessions cost good key
#117 0.132 standards interorganizational ios standardization standard systems compatibility effects cooperation firms industry benefits open interoperability key heterogeneous vertical propose vendors collective
#264 0.111 risk risks management associated managing financial appropriate losses expected future literature reduce loss approach alternative mitigate failures failure cause mitigation
#205 0.090 cognitive style research rules styles human individual personality indicates stopping users composition analysis linguistic contextual certain differences preferred theoretical activity
#26 0.084 business large organizations using work changing rapidly make today's available designed need increasingly recent manage years activity important allow achieve
#89 0.063 product products quality used characteristics examines role provide goods customization provides offer core sell key potential stronger insights design initial