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The value of enterprise information systems under different corporate governance aspects

Author

Listed:
  • Xin Chen

    (Shanghai Advanced Institute of Finance, Shanghai Jiao Tong University)

  • Qizhi Dai

    (Drexel University)

  • Chaohong Na

    (Yunnan University)

Abstract

Enterprise information systems (EIS) improve access to information, process optimization and system integration. Such enhanced information processing capabilities have varying effects on firm financial performance under different corporate governance aspects. We examine such interacting effects with data of Chinese listed companies during 2008 and 2013. Our empirical study shows that EIS implementation is associated with higher financial performance when the firm’s ownership is more concentrated or the CEO assumes a dual role as the chair of the board of directors. EIS implementation is associated with lower financial performance when the firm is a state-owned enterprise or within a business group. This study contributes to literature in IT business value in general and research in enterprise systems in particular by expanding our understandings about the varying impacts of EIS under different corporate governance aspects.

Suggested Citation

  • Xin Chen & Qizhi Dai & Chaohong Na, 2019. "The value of enterprise information systems under different corporate governance aspects," Information Technology and Management, Springer, vol. 20(4), pages 223-247, December.
    • Handle: RePEc:spr:infotm:v:20:y:2019:i:4:d:10.1007_s10799-019-00310-3
    DOI: 10.1007/s10799-019-00310-3
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    2. Yang, Chang & Chen, Xin & Chen, Xian, 2021. "Vertical interlock and stock price crash risk," Pacific-Basin Finance Journal, Elsevier, vol. 68(C).

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