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Market Reactions to Investments in Information Technology: Insight from Warsaw Stock Exchange

Proceedings of the Sixteenth Americas Conference on Information Systems, Lima, Peru, August 12-15, 2010

11 Pages Posted: 17 Aug 2010  

Dorota Dobija

Kozminski University

Karol Marek Klimczak

University of Navarra - Faculty of Economics and Business; Kozminski University

Narcyz Roztocki

State University of New York at New Paltz - School of Business

Heinz Roland Weistroffer

Virginia Commonwealth University (VCU) - School of Business

Date Written: August, 15 2010

Abstract

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.

Keywords: Event studies, information technology, investments, Poland, transition economies

JEL Classification: G14

Suggested Citation

Dobija, Dorota and Klimczak, Karol Marek and Roztocki, Narcyz and Weistroffer, Heinz Roland, Market Reactions to Investments in Information Technology: Insight from Warsaw Stock Exchange (August, 15 2010). Proceedings of the Sixteenth Americas Conference on Information Systems, Lima, Peru, August 12-15, 2010. Available at SSRN: https://ssrn.com/abstract=1659280

Dorota Dobija

Kozminski University ( email )

ul. Jagiellonska 57/59
Warsaw, 03-303
Poland

Karol Marek Klimczak

University of Navarra - Faculty of Economics and Business ( email )

Edificio Amigos
Campus Universitario
Pamplona, Navarra 31009
Spain
+34 948 425 600 (80 2348) (Phone)

HOME PAGE: http://https://www.researchgate.net/profile/Karol_Klimczak

Kozminski University ( email )

ul. Jagiellonska 57/59
Warsaw, 03-301
Poland
0048222138895 (Phone)

HOME PAGE: http://https://www.researchgate.net/profile/Karol_Klimczak

Narcyz Roztocki (Contact Author)

State University of New York at New Paltz - School of Business ( email )

New Paltz, NY 12561
United States
(845)257-2935 (Phone)
(845)257-2947 (Fax)

HOME PAGE: http://www2.newpaltz.edu/~roztockn/

Heinz Roland Weistroffer

Virginia Commonwealth University (VCU) - School of Business ( email )

Richmond, VA 23284-4000
United States

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