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

  •  Lu Zhang    
  •  Jinghua Huang    
  •  Pan Wang    


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.

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