Effect of IT investment announcement on company value: evidence from Indonesia stock exchange
This study examines the effect of IT investment on company value in the Indonesian Stock Exchange. The method used is the event study analysis. The beta used to calculate abnormal returns are the traditional beta and the corrected beta of Dimson and Scholes-Williams given that the Indonesian market...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2023
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| Online Access: | http://journalarticle.ukm.my/22004/ http://journalarticle.ukm.my/22004/1/JeM_7.pdf |
| _version_ | 1848815491806658560 |
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| author | Siska Aprilia Oktaviani, Muhammad Miqdad, Wahyu Agus Winarno, |
| author_facet | Siska Aprilia Oktaviani, Muhammad Miqdad, Wahyu Agus Winarno, |
| author_sort | Siska Aprilia Oktaviani, |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | This study examines the effect of IT investment on company value in the Indonesian Stock Exchange. The method used is the event study analysis. The beta used to calculate abnormal returns are the traditional beta and the corrected beta of Dimson and Scholes-Williams given that the Indonesian market is a thin trading market. The results of this study indicate that there is an effect of IT investment announcements on firm value on the post-event window. The results also show that investors tend to react positively to IT investment announcements made by companies in 2020 thus suggesting that the occurrence of the COVID-19 pandemic has effectively affected investors in processing new information regarding technology investments made by companies. The study is expected to provide benefits to assist policy making on Indonesia Stock Exchange and Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) regarding the disclosure of company information on the implementation of IT investments. |
| first_indexed | 2025-11-15T00:50:50Z |
| format | Article |
| id | oai:generic.eprints.org:22004 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T00:50:50Z |
| publishDate | 2023 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:220042023-08-07T03:18:24Z http://journalarticle.ukm.my/22004/ Effect of IT investment announcement on company value: evidence from Indonesia stock exchange Siska Aprilia Oktaviani, Muhammad Miqdad, Wahyu Agus Winarno, This study examines the effect of IT investment on company value in the Indonesian Stock Exchange. The method used is the event study analysis. The beta used to calculate abnormal returns are the traditional beta and the corrected beta of Dimson and Scholes-Williams given that the Indonesian market is a thin trading market. The results of this study indicate that there is an effect of IT investment announcements on firm value on the post-event window. The results also show that investors tend to react positively to IT investment announcements made by companies in 2020 thus suggesting that the occurrence of the COVID-19 pandemic has effectively affected investors in processing new information regarding technology investments made by companies. The study is expected to provide benefits to assist policy making on Indonesia Stock Exchange and Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) regarding the disclosure of company information on the implementation of IT investments. Penerbit Universiti Kebangsaan Malaysia 2023 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/22004/1/JeM_7.pdf Siska Aprilia Oktaviani, and Muhammad Miqdad, and Wahyu Agus Winarno, (2023) Effect of IT investment announcement on company value: evidence from Indonesia stock exchange. Jurnal Ekonomi Malaysia, 57 (1). pp. 1-12. ISSN 0127-1962 https://www.ukm.my/jem/view-articles/ |
| spellingShingle | Siska Aprilia Oktaviani, Muhammad Miqdad, Wahyu Agus Winarno, Effect of IT investment announcement on company value: evidence from Indonesia stock exchange |
| title | Effect of IT investment announcement on company value: evidence from Indonesia stock exchange |
| title_full | Effect of IT investment announcement on company value: evidence from Indonesia stock exchange |
| title_fullStr | Effect of IT investment announcement on company value: evidence from Indonesia stock exchange |
| title_full_unstemmed | Effect of IT investment announcement on company value: evidence from Indonesia stock exchange |
| title_short | Effect of IT investment announcement on company value: evidence from Indonesia stock exchange |
| title_sort | effect of it investment announcement on company value: evidence from indonesia stock exchange |
| url | http://journalarticle.ukm.my/22004/ http://journalarticle.ukm.my/22004/ http://journalarticle.ukm.my/22004/1/JeM_7.pdf |