An examination of the long-term business value of investments in information technology
In this paper, we examine the effects of investments in Information Technology (IT) on the long term business values of organizations. The regression discontinuity design is used in this research to examine eight hundred and ten IT investment announcements collected from the period 1982–2007. Our re...
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| Format: | Article |
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Springer
2017
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| Online Access: | https://eprints.nottingham.ac.uk/51995/ |
| _version_ | 1848798622563434496 |
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| author | Shea, Vincent J. Dow, Kevin E. Chong, Alain Yee-Loong Ngai, Eric W. T. |
| author_facet | Shea, Vincent J. Dow, Kevin E. Chong, Alain Yee-Loong Ngai, Eric W. T. |
| author_sort | Shea, Vincent J. |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | In this paper, we examine the effects of investments in Information Technology (IT) on the long term business values of organizations. The regression discontinuity design is used in this research to examine eight hundred and ten IT investment announcements collected from the period 1982–2007. Our results found that press releases can affect the market value of a firm by possibly providing investors with a better idea of a firm’s current and future operations and strategy. On the other hand, these press releases also appear to attract more transient investors. The attraction of transient investors likely suggests the market believes the IT investing firm is serious about its potential for growth and expansion. |
| first_indexed | 2025-11-14T20:22:42Z |
| format | Article |
| id | nottingham-51995 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T20:22:42Z |
| publishDate | 2017 |
| publisher | Springer |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-519952020-05-04T18:36:11Z https://eprints.nottingham.ac.uk/51995/ An examination of the long-term business value of investments in information technology Shea, Vincent J. Dow, Kevin E. Chong, Alain Yee-Loong Ngai, Eric W. T. In this paper, we examine the effects of investments in Information Technology (IT) on the long term business values of organizations. The regression discontinuity design is used in this research to examine eight hundred and ten IT investment announcements collected from the period 1982–2007. Our results found that press releases can affect the market value of a firm by possibly providing investors with a better idea of a firm’s current and future operations and strategy. On the other hand, these press releases also appear to attract more transient investors. The attraction of transient investors likely suggests the market believes the IT investing firm is serious about its potential for growth and expansion. Springer 2017-02-02 Article PeerReviewed Shea, Vincent J., Dow, Kevin E., Chong, Alain Yee-Loong and Ngai, Eric W. T. (2017) An examination of the long-term business value of investments in information technology. Information Systems Frontiers . ISSN 1387-3326 IT investments; Regression discontinuity design; Event study; Business value https://link.springer.com/article/10.1007%2Fs10796-017-9735-5 doi:10.1007/s10796-017-9735-5 doi:10.1007/s10796-017-9735-5 |
| spellingShingle | IT investments; Regression discontinuity design; Event study; Business value Shea, Vincent J. Dow, Kevin E. Chong, Alain Yee-Loong Ngai, Eric W. T. An examination of the long-term business value of investments in information technology |
| title | An examination of the long-term business value of investments in information technology |
| title_full | An examination of the long-term business value of investments in information technology |
| title_fullStr | An examination of the long-term business value of investments in information technology |
| title_full_unstemmed | An examination of the long-term business value of investments in information technology |
| title_short | An examination of the long-term business value of investments in information technology |
| title_sort | examination of the long-term business value of investments in information technology |
| topic | IT investments; Regression discontinuity design; Event study; Business value |
| url | https://eprints.nottingham.ac.uk/51995/ https://eprints.nottingham.ac.uk/51995/ https://eprints.nottingham.ac.uk/51995/ |