Faculty Scholarship 1994 - Present

Exploratory Study of Influence of IT Investments on Accounting Market-Based Performance of Firms

Although there have been several studies in the past to argue the strategic significance of information technology for the firm performance, until quite recently very little studies has attempted to test the economic impact of information technology on the diverse dimension of performance and/or uniformed standardized measure of organizational performance. This paper empirically examines the diverse linkages between information technology and various measure of the firm's economic performance, with respect to accounting-based and market-based performance while considering intervening variables such as firm size, captial intensity, R&D and advertising intensity. This paper demonstrates that various dimensions of information technology are significantly and positively linked to the firms performance irrespective of different criterion of performance measures. The empirical test of this study also reinforces that information technology has a significant effect on aggregated composite measures of accounting and market-based performances.