The Value Relevance of Announcements of Transformational Information Technology Investments

MIS Quarterly, Vol. 27, No. 4, pp. 637-656, December 2003

Posted: 25 Feb 2009 Last revised: 16 Dec 2015

See all articles by Andrew Urbaczewski

Andrew Urbaczewski

University of Denver - Daniels College of Business; United States Air Force Academy

Bruce Dehning

Chapman University - The George L. Argyros School of Business & Economics

John Wells

affiliation not provided to SSRN

Vernon J. Richardson

University of Arkansas at Fayetteville

Date Written: November 20, 2008

Abstract

This paper both confirms and extends the value relevance of information technology (IT) announcements found by K.S. Im et al. (2001) and B.L. Dos Santos et al. (1993). We extend their work by proposing that an overarching construct, the strategic IT role in an industry, accounts for the factors previously found to affect the stock market response to IT announcements. These results provide support for the value of capturing the nature of an industry's IT-related competitive maneuvering in studies striving to understand the conditions under which IT investments are likely to produce out-of-the-ordinary, positive returns.

Keywords: IT investments

JEL Classification: M15, M41, O14

Suggested Citation

Urbaczewski, Andrew and Dehning, Bruce and Wells, John and Richardson, Vernon J., The Value Relevance of Announcements of Transformational Information Technology Investments (November 20, 2008). MIS Quarterly, Vol. 27, No. 4, pp. 637-656, December 2003, Available at SSRN: https://ssrn.com/abstract=1304907

Andrew Urbaczewski

University of Denver - Daniels College of Business ( email )

2101 S. University Blvd.
Denver, CO 80208
United States
+1 303 871 4802 (Phone)

United States Air Force Academy ( email )

Colorado Springs, CO
United States

Bruce Dehning (Contact Author)

Chapman University - The George L. Argyros School of Business & Economics ( email )

333 N. Glassell
Orange, CA 92866
United States

John Wells

affiliation not provided to SSRN ( email )

Vernon J. Richardson

University of Arkansas at Fayetteville ( email )

401 WCOB
Fayetteville, AR 72701
United States

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