A Model for Assessing Information Technology Investments: Insights from Event Studies

Abstract:     
Investments in information technology (IT) do not always result in the expected payoffs. The factors which determine the success of IT investments are not well understood. Event studies are one approach to appraising IT investments. In this paper we review major event studies on IT investments, and based on the results of these studies, we propose a conceptual model describing the factors that impact successful IT investments.

Keywords: Event studies, information technology, investments in IT, market value, productivity of IT

Working Paper Series