Market Reactions to Investments in Information Technology: Insight from Warsaw Stock Exchange
Karol Marek Klimczak
State University of New York at New Paltz - School of Business
Heinz Roland Weistroffer
Virginia Commonwealth University (VCU) - School of Business
August, 15 2010
Proceedings of the Sixteenth Americas Conference on Information Systems, Lima, Peru, August 12-15, 2010
Building on the Roztocki and Weistroffer (2009c) explanatory model, this study examines stock market reactions to announcements of information technology investments in Poland, an emerging market and transition economy. Based on 68 announcements by companies traded at the Warsaw Stock Exchange in the period 2002 to 2009, our study confirms some previously published results, but also shows that specific characteristics of announcements play a more important role than has been commonly assumed. Our results indicate that investors in Poland react more positively if systems are acquired from global rather than local vendors. Announcements about completed projects are more positively received than announcements about planned or in-progress projects. Furthermore, announcements in Polish, targeted at existing shareholders, are more likely to be received positively than similar announcements released in English, targeting global investors.
Number of Pages in PDF File: 11
Keywords: Event studies, information technology, investments, Poland, transition economies
JEL Classification: G14
Date posted: August 17, 2010
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