Market reaction to the announcement of an information technology investment: Evidence from Indonesia

Wijayana, Singgih; Achjari, Didi

doi:10.1016/j.im.2019.103248

Cited by 16 publications

(32 citation statements)

References 67 publications

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“…Besides the direct relationship between information technology investment and the market reaction, investors may react to the same information technology investment differently under different conditions (contextual factors), as indicated in studies on general information technology investment [ 19 ], cloud computing initiatives [ 18 ], e-commerce outsourcing [ 27 ], and websites impairment [ 28 ]. By studying the market reaction to e-commerce investment, Subramani and Walden [ 10 ] and Dehning et al [ 11 ] investigate firm type (conventional firms and net firms), business model (B2B and B2C), and goods type (tangible goods and intangible goods).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Prior studies argue that when an IT is employed for the first time, it will enhance intra-organizational efficiency and effectiveness, thereby affecting the firm’s market value [ 30 ]. In addition, the first-time implementation of a particular IT and the subsequent investment in the same technology may draw investors’ attention differently [ 19 ]. Therefore, we propose that these two types of investment elicit different levels of market reactions.…”

Section: Research Model and Hypothesesmentioning

confidence: 99%

“…Such information impresses investors that a firm has in place an innovative management team leveraging new technologies to exploit growing online markets [ 6 ]. If a firm invests and announces its OSC for the first time, it may come as a shock and attract the attention of investors to see how these investments will affect the performance or productivity of the firm [ 19 ]. Consequently, such an announcement will have a greater surprise effect, and therefore, lead to larger market reactions [ 42 ].…”

Section: Research Model and Hypothesesmentioning

confidence: 99%

“…A radical IT investment refers to the first-time of a firm’s investment into a specific IT and an incremental one refers to an IT investment to maintain an existing application. Prior studies have found that investors may respond differently to these different types of IT investment [ 19 ]. Whether this finding still holds for OSC investments has not been addressed in literature and the moderating effect of investment innovativeness needs to be examined.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Market reaction to the announcement of online sales channel investment in enterprises: Evidence from a relatively stable market environment

Lei

Zhou

Cheung

et al. 2021

Electron Commer Res

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Although relevant literature investigates the economic value of online sales channel (OSC) from the perspective of the stock market, knowledge on this topic remains insufficient or unclear because existing studies are conducted under an extremely turbulent market environment and have not considered different aspects. This study aims to examine the topic by focusing on the market reactions to OSC investment from three aspects (namely, the innovativeness, business model and goods types) in a relatively stable market environment to fill in the research gap. Empirical results, obtained using 69 firm-level OSC announcements from October 2002 to September 2007, show that the stock market reacts positively to OSC investment by firms. Additionally, the stock market reactions to OSC investment mainly depend on two key characteristics, namely investment innovativeness and business model applied.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Research Model and Hypothesesmentioning

confidence: 99%

Section: Research Model and Hypothesesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Market reaction to the announcement of online sales channel investment in enterprises: Evidence from a relatively stable market environment

Lei

Zhou

Cheung

et al. 2021

Electron Commer Res

View full text Add to dashboard Cite

show abstract

“…Shares are proof of ownership of the capital of a company. Shares are one source of funds obtained by companies that come from capital owners with the consequence that companies must pay dividends (Kałdoński et al, 2019;Wijayana & Achjari, 2019).…”

Section: Capital Market Reactionmentioning

confidence: 99%

Do Financing and Investment Determine the Capital Market Reaction? Evidence from Listed Mining Companies in Indonesia

Surahman¹,

Khairani²,

Erna³

et al. 2020

JAROE

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Objective – The level of trust in the stocks market is one of the important factors to improve the company’s image in facing the increasingly challenging global market. The stock market’s trust can be analyzed by the business capital owned by its company. This research aims to analyze the influence of financing and investment on the dependent variables of capital reaction taking the samples of mining companies listed on the Indonesia Stock Exchange (IDX). This study also analyzes the responses in the ability of mining companies in the capital market. Design/methodology – The associative approach has been used in this research and a descriptive research model has been utilized. This research is intended to examine the free effect of financing and investment on the dependent variable of the market reaction. The sample used in this study is saturated sampling. Samples of 32 companies out of 44 mining companies listed on the IDX were drawn for analysis purposes. Results – This study found that DER financing and PER investment (price-earnings ratio) have no significant impact on capital market reaction TVA (trading volume activity) in listed mining companies in Indonesia. It can be concluded that increasing quality of mining companies in Indonesia are mostly not influenced by the power of DER and investment PER.

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White knight in dark days? Supply chain finance firms, blockchain, and the COVID-19 pandemic

Paul¹,

Adhikari²,

Bose³

2022

Information & Management

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Market reaction to the announcement of an information technology investment: Evidence from Indonesia

Cited by 16 publications

References 67 publications

Market reaction to the announcement of online sales channel investment in enterprises: Evidence from a relatively stable market environment

Market reaction to the announcement of online sales channel investment in enterprises: Evidence from a relatively stable market environment

Do Financing and Investment Determine the Capital Market Reaction? Evidence from Listed Mining Companies in Indonesia

White knight in dark days? Supply chain finance firms, blockchain, and the COVID-19 pandemic

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