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Information Technology and Financial Performance: The Impact of being an Internet-Dependent Firm on Stock Returns

Author

Listed:
  • Aurore J. Kamssu

    (Tennessee State University)

  • Brian J. Reithel

    (The University of Mississippi, University)

  • Jennifer L. Ziegelmayer

    (The University of Mississippi, University)

Abstract

The choice of a particular technology to implement a firm's business strategy may impact the firm's market performance. This study assesses the impact of being an Internet-dependent firm on a firm's stock valuation. The empirical results indicate that in a booming economy, Internet-dependent firms have lower excess returns than non-Internet firms. These high returns can be explained by the fact that in such an economy, Internet stocks trade at relatively higher prices than non-Internet stocks. Therefore, choosing a particular technology to implement business strategy may have a significant impact a firm's stock performance.

Suggested Citation

  • Aurore J. Kamssu & Brian J. Reithel & Jennifer L. Ziegelmayer, 2003. "Information Technology and Financial Performance: The Impact of being an Internet-Dependent Firm on Stock Returns," Information Systems Frontiers, Springer, vol. 5(3), pages 279-288, September.
    • Handle: RePEc:spr:infosf:v:5:y:2003:i:3:d:10.1023_a:1025649311259
    DOI: 10.1023/A:1025649311259
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    References listed on IDEAS

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    Cited by:

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    2. Kunofiwa Tsaurai, 2020. "Information and Communication Technology, Energy Consumption and Financial Development in Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 429-437.
    3. Huynh, Toan Luu Duc & Hille, Erik & Nasir, Muhammad Ali, 2020. "Diversification in the age of the 4th industrial revolution: The role of artificial intelligence, green bonds and cryptocurrencies," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    4. Francis Kofi Andoh-Baidoo & Kweku-Muata Osei-Bryson & Kwasi Amoako-Gyampah, 2012. "Effects of firm and IT characteristics on the value of e-commerce initiatives: An inductive theoretical framework," Information Systems Frontiers, Springer, vol. 14(2), pages 237-259, April.
    5. C-T Bruce Ho, 2011. "Measuring dot com efficiency using a combined DEA and GRA approach," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(4), pages 776-783, April.

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