Reexamining the Value Relevance of E-Commerce Initiatives

Dehning, Bruce; Richardson, Vernon J.; Urbaczewski, Andrew; Wells, John D.

doi:10.1080/07421222.2004.11045788

Cited by 65 publications

(49 citation statements)

References 41 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Several researchers have sought to measure the market value of e-commerce investments using the event study methodology to measure abnormal returns (Dardan and Stylianou 2001;Dehning et al 2002Dehning et al , 2003Dehning et al , 2004Subramani and Walden 1999. In addition, other researchers have identified explanatory variables that influence the observed abnormal returns in e-commerce investments (e.g., Dehning et al 2004;Subramani and Walden 2001).…”

Section: Introductionmentioning

confidence: 98%

Effects of firm and IT characteristics on the value of e-commerce initiatives: An inductive theoretical framework

Andoh‐Baidoo¹,

Osei-Bryson

Amoako‐Gyampah

2010

Inf Syst Front

View full text Add to dashboard Cite

We explore the theoretical foundations on how firm and IT characteristics explain the market value variations in e-commerce initiatives by examining the announcements of 946 e-commerce initiatives in the public media. Our approach combines the Event study methodology and Decision tree induction to examine the main and interaction effects of IT and firm characteristics on Cumulative Abnormal Returns (CAR). In particular, we generate complex interaction models that can guide e-commerce investment decisions so managers can know, for example, which combination of IT and firm characteristics are more likely to be viewed positively by investors. The selected study variables as well as explanation of the proposed framework are informed by innovation, resource-based view, transaction cost economics and complementarity theories. We have inductively developed a set of propositions that can be deductively tested to assess the validity of our proposed theoretical framework. Hence our study provides an initial roadmap for theory development on e-commerce and CAR.

show abstract

Section: Introductionmentioning

confidence: 98%

Effects of firm and IT characteristics on the value of e-commerce initiatives: An inductive theoretical framework

Andoh‐Baidoo¹,

Osei-Bryson

Amoako‐Gyampah

2010

Inf Syst Front

View full text Add to dashboard Cite

show abstract

“…For example Dehning et al (2004) found that e-commerce announcements had a significantly greater impact in 1998 than in the fourth quarter of 2000. This can suggest that depending on the time periods analyzed, researchers may or may not find an effect from the information technology.…”

Section: Stationaritymentioning

confidence: 99%

“…For example, as noted by Dehning et al (2004) the choice of the event window can affect inferences made about the event of interest. Using data gathered from Subramani and Walden (2001) and additional data that they gathered allowed them to make formal hypotheses about the stationarity of the data, the corresponding impact of e-commerce announcements and, the affect of the length of the window.…”

Section: Summary Contributions and Extensionsmentioning

confidence: 99%

Event study methodologies in information systems research

Konchitchki

O’Leary

2011

International Journal of Accounting Information Systems

138

View full text Add to dashboard Cite

Event studies are based on the theoretical framework of efficient capital markets and the notion that security prices include all information available to the market. As a result, announcements made by firms provide to market participants information that can be impounded into the market price. This paper investigates the use of event studies in information systems and accounting information systems research using a three-pronged approach. First, this paper provides a comprehensive survey of research that uses event study methodologies, where the events are announcements made by firms about issues related to information systems, e.g., announcements of the adoption of enterprise resource planning systems and of the effect of security breaches in firms' information systems. Second, this paper summarizes event study methodologies used in prior research, along with some of the key parameters and concerns associated with their implementation. Third, this paper provides remarks on key event study modeling issues, and it offers recommendations to researchers.

show abstract

“…This category of announcements is about firms developing e-commerce activities or expressing the intention to develop e-commerce activities. Subramani and Walden (2001), Lee, Cho, & Lee (2002), Dehning,Richardson, &Urbaczewski(2004), Ferguson, Finnb, & Hall (2005 and Lin, Jang, & Chen(2007)show that e-commerce announcementshave a positive effect on firm market value. Dewan and Ren (2007) find that when the changes in risk are controlled, the impact of e-commerce announcements on the stock price is not significant.…”

Section: Literature Reviewmentioning

confidence: 99%

An Integration Model of the Impact of IT Investment Announcements on Firm Market Value

Zhang¹,

Huang²,

Wang³

2012

IBR

View full text Add to dashboard Cite

Large amounts of resources have been, and will continue to be, invested in information technology (IT).The current paper establishes an integrative model of the impact of IT investment announcements on firm market valueby reviewing and analyzing several papers of empirical research. The impact factors are divided into four parts:IT investment characteristics, firm characteristics, competitive environment (including industry characteristics and partner characteristics), and country characteristics. In addition, the current article applies the integrative model to guide future research by proposingcorresponding hypotheses. The objective of the paper is to help scholars further understand the status and limitations of relative studies to facilitate further research. The proposed hypotheses providefirms with scenarios that can get the most benefit out of IT investment, thus guiding scholars on empirical research as well as strategic decision makers in organizations.

show abstract

Reexamining the Value Relevance of E-Commerce Initiatives

Cited by 65 publications

References 41 publications

Effects of firm and IT characteristics on the value of e-commerce initiatives: An inductive theoretical framework

Effects of firm and IT characteristics on the value of e-commerce initiatives: An inductive theoretical framework

Event study methodologies in information systems research

An Integration Model of the Impact of IT Investment Announcements on Firm Market Value

Contact Info

Product

Resources

About