Fouad Nagm

The Market Value Impact of IT Investments

An investigation into the impact IT investment announcements have on the market value of firms between 1996 and 2006

• Broschiertes Buch

Produktbeschreibung

This study applies the event study method, a method
to measure how a firm s stock price reacts to new
information, to a list of publicly traded Australian
firms. 217 announcements were selected relating to IT
investments over a period from 1996 to 2006. Positive
abnormal returns are observed on the announcement day
of each of three distinct time periods; during the
technology bubble (1996 to 1999), during the Year
2000 bug (Y2K bug) period (2000 - 2001), as well as
the period afterwards that ensued to 2006. These are
all statistically significant. Similar results were
also found when categorizing announcing firms into
two broad industry groups; IT firms and non-IT firms.
Each announcement was value-weighed based on firm
size and find that the market s assessment of the
returns to IT investments is more favourable towards
smaller firms than larger firms for the whole sample,
across all periods and the two industry groups. These
results are of practical relevance for the particular
Australian market under investigation given the
comparatively high levels of spending on IT in
Australia in relation to other OECD countries.

Produktdetails

• Verlag: VDM Verlag Dr. Müller
• Seitenzahl: 60
• Englisch
• Abmessung: 220mm
• ISBN-13: 9783639139624
• ISBN-10: 3639139623
• Artikelnr.: 26192866

Autorenporträt

Dr Fouad Nagm has several years of industry experience in various
analytical and project roles at E&Y, BT Financial Group and
National Australia Bank. He has taught a number of
under/postgraduate subjects including Research Methods,
Business IS, IS Management, Organisational
Finance, IS Project/Knowledge Management.
Email: [e-mail]