Market reactions to enterprise systems investments in European economies: An event study

Josephine Chong, Swati Nagar, Jason X. Wang

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

This study explores the impact of enterprise systems investments on the market value of the firm. Using event study methodology, this study identified 31 announcements traded at the London Stock Exchange between 2009 and 2014. This is the one of the few studies to examine the extent to which announcements about enterprise systems would add market value of the firm in the European economies. Our findings confirm the results from previous empirical studies. We find that enterprise systems investments do not generate abnormal positive stock market returns. Also, investors and shareholders do not react positively to the enterprise systems investments during bear markets. This study contributes to the existing information systems research on the value of enterprise systems investment in a European context.
Original languageEnglish
Title of host publicationProceedings of the 12th European, Mediterranean & Middle Eastern Conference on Information Systems (EMCIS)
EditorsKostantinos Lambrinoudakis, Vincenzo Morabito, Marinos Themistocleous
PublisherEuropean and Mediterranean Conference on Information Systems
Pages1-10
Number of pages10
ISBN (Electronic)9789606897085
Publication statusPublished - 1 Jun 2015
Externally publishedYes
Event12th European, Mediterranean and Middle Eastern Conference on Information Systems - Royal Olympic Hotel, Athens, Greece
Duration: 1 Jun 20152 Jun 2015
Conference number: 12

Conference

Conference12th European, Mediterranean and Middle Eastern Conference on Information Systems
Abbreviated titleEMCIS 2015
CountryGreece
CityAthens
Period1/06/152/06/15

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