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ERP investment and implementation between China and US: difference and enlightenment

Author

Listed:
  • Xiangbin Yan

    (University of Science and Technology Beijing)

  • Guang Yu

    (Harbin Institute of Technology)

  • Peinan Ji

    (Harbin Institute of Technology)

Abstract

The purpose of this paper is to study the impact of Chinese enterprises’ ERP investment and implementation on stock performance and financial performance and the differences between Chinese enterprises and American enterprises’ ERP investment as well as the differences between the smaller firms and larger firms’ ERP investment. The result indicates the performance of Chinese companies investing in ERP is better than American companies in both stock and profitability financial performance. When it comes to the different size firms, the result shows that smaller firms get more return on the stock market than larger firms after investing in ERP, while larger firms get more return on financial profitability than smaller firms. After enterprises invest in ERP, we find the increase of financial cost only in the implementation period for the full and smaller size sample, but not in the case of larger size firm sample.

Suggested Citation

  • Xiangbin Yan & Guang Yu & Peinan Ji, 2019. "ERP investment and implementation between China and US: difference and enlightenment," Information Technology and Management, Springer, vol. 20(4), pages 175-185, December.
    • Handle: RePEc:spr:infotm:v:20:y:2019:i:4:d:10.1007_s10799-019-00301-4
    DOI: 10.1007/s10799-019-00301-4
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    References listed on IDEAS

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