Market Reaction to Information Technology Investment Announcements in Russian Firms

Proceedings of the 20th Americas Conference on Information Systems (AMCIS), 2014

13 Pages Posted: 16 Aug 2014

See all articles by Xenia Boyko

Xenia Boyko

National Research University Higher School of Economics

Elena Rogova

National Research University Higher School of Economics

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 8, 2014

Abstract

This study examines the stock market reaction to announcements of information technology (IT) investments by Russian firms. While several similar studies have been published in the context of highly developed economies like the USA, very few such studies have been conducted in transition economies, and perhaps none previously in Russia. Based on 91 announcements between 2009 and 2012, three research hypotheses are tested. Similar to the results reported in previous studies from other countries, industry sector of the company making the IT investment has little effect on the market reaction. Also similar to the results reported from the USA, the Russian stock market seems to respond more positively to innovative IT investments than to non-innovative investments. However, in contrast to the results reported in a study conducted in Poland, where IT investments through global vendors seem to be perceived more positively than investments through local vendors, in Russia investments through global vendor are received negatively by the stock market.

Keywords: Event study, information technology investments, Russia, transition economies

JEL Classification: G00, G14, G31, L86

Suggested Citation

Boyko, Xenia and Rogova, Elena and Roztocki, Narcyz and Weistroffer, Heinz Roland, Market Reaction to Information Technology Investment Announcements in Russian Firms (August 8, 2014). Proceedings of the 20th Americas Conference on Information Systems (AMCIS), 2014, Available at SSRN: https://ssrn.com/abstract=2480622

Xenia Boyko

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Elena Rogova

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

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 )

301 W Main Street
Richmond, VA 23284-4000
United States

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