Paper Info
Title
Information technology investments and firm value
Abstract
Our objective in this paper is to develop a firm value model to assist IT managers and researchers in understanding the multiple effects that IT investments have on firm value. This firm value approach adds to the process-oriented approach through simultaneous evaluation of all of the factors that affect firm value. It is crucial for IT professionals to recognize the complex and diverse implications of IT investments on firm value. The implications of the firm value approach include forcing IT managers to think in terms of both industry and company-specific effects of IT investments, to consider both the magnitude and duration of competitive advantage due to IT investments, and the implications of the effect that IT investments have on risk and its relation to firm value. We demonstrate an application of the firm value framework by evaluating a major stream of research in MIS--event studies of IT investment announcements. Appendices to this paper can be found at http://www.itandfirmvalue.com.
Year
DOI
Venue
2005
10.1016/j.im.2004.11.003
Information & Management
Keywords
Field
DocType
firm value framework,event studies,process-oriented approach,it investment,residual income,it investment announcement,mis-event study,market value,information technology,it manager,information technology investment,firm value model,it investments,it professional,company-specific effect,firm value approach,competitive advantage,firm value,it management,event study
Capital call,Economics,Business value,Market value added,Economic Value Added,Industrial organization,Market value,Event study,Marketing,Operations management,Enterprise value,Firm offer
Journal
Volume
Issue
ISSN
42
7
Information & Management
Citations 
PageRank 
References 
29
1.01
27
Authors
3
Name
Order
Citations
PageRank
Bruce Dehning157322.39
Vernon J. Richardson280246.05
Theophanis Stratopoulos328212.30