Resumen de An Application of Event-Study Methodology on Evaluating Information Technology Investment
This paper suggests a testing methodology to evaluate information technology (IT) investment from a business finance perspective. An evaluation framework presents links in between investment in IT and market value of information technology (IT) in various sectors investing firms. lt also reviews shareholders' interpretations on their general usefulness in improving earning ability and their strategic implications. The testing program revolves around three research questions: (1) how does the market react to IT investment announcements: (2) does IT investment affect subsequent accounting earnings performance; and (3) how share values are affected by changes of earnings performance caused by previous IT investments. Finally, some implications on using a general evaluation variable, namely market values in measuring performance of IT investment are discussed.
