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The Impact of Enterprise IT Investment on Corporate Performance: Evidence from China

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  • Peinan Ji
  • Xiangbin Yan
  • Guang Yu

Abstract

This paper uses econometrics to examine the influence of information technology investment using public firm data from China. Specifically, we observe whether there are differences in IT investment between developing countries and developed countries theoretically, and how the financial market performed after massive IT investment in China. The results are based on a sample of 166 IT investment announcements selected from the 3740 possible IT investment announcements spanning 2009 to 2017. Over the announcement period, we find positive effect for the full sample and the innovative IT investments, but not in the case of non-innovative investments. When it comes to types of listed companies, only the IT investments of growth enterprises market listed companies have a significant impact on stock price performance. Compared with previous studies, which only pay attention to the longitudinal position of firms, our research also examined the impact of IT investment on firms’ horizontal position, namely the changes of market before and after the investment in the time-line.

Suggested Citation

  • Peinan Ji & Xiangbin Yan & Guang Yu, 2020. "The Impact of Enterprise IT Investment on Corporate Performance: Evidence from China," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 23(3), pages 176-190, July.
    • Handle: RePEc:taf:ugitxx:v:23:y:2020:i:3:p:176-190
    DOI: 10.1080/1097198X.2020.1792230
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    Cited by:

    1. Thanh Ngo & Tu DQ Le & Dat T Nguyen & Tin H Ho, 2023. "Determinants Of Bank Performance: Revisiting The Role Of Ceo’S Personality Traits Using Graphology," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 26(2), pages 289-310, May.
    2. Suchismita Ghosh & Ritu Pareek & Tarak Nath Sahu, 2024. "Do Carbon Performance and Disclosure Practices Effect Companies’ Financial Performance: A Non-Linear Perspective," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 31(3), pages 733-754, September.
    3. Georgiana Danilov, 2024. "The impact of corporate governance on firm performance: panel data evidence from S&P 500 Information Technology," Future Business Journal, Springer, vol. 10(1), pages 1-25, December.
    4. Suchismita Ghosh & Ritu Pareek & Tarak Nath Sahu, 2023. "U‐shaped relationship between environmental performance and financial performance of non‐financial companies: An empirical assessment," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1805-1815, July.

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