Due to the extraordinary role technology plays in modern business, investing in information technology (IT) and determining its benefits are the two most important decisions facing accounting and financial management executives and managers in Fortune 500 organizations. Prior studies conducted in mid-1980s and early 1990s indicated that there was zero or negative relationship between IT investments and corporate performances. Conversely, the studies conducted in the mid-1990s and 2000s concluded that the relationship between IT investments and corporate performances showed some contradictory results. This extraordinary inconsistency has long been a dilemma to accounting and financial management executives, managers, and academicians. A recent quantitative study of 245 accounting and financial management executives and managers in Fortune 500 corporations found that, as well as providing some tangible values and intangible benefits to the firms, IT investments (IT expenditure, IT strategy, IT capability and IT management) are generally positively associated with corporate performances (efficiency, effectiveness, quality, productivity, profitability, stock returns, and competitive advantage). The study specifically found that IT expenditure is positively associated with profitability, productivity, efficiency, and coordination; IT strategy is positively associated with profitability, competitive advantage, and stock returns; IT capability is positively associated with profitability and stock returns; and IT management is positively associated with profitability, efficiency, and stock returns. The study also indicated that most accounting and financial professionals and academicians utilize accounting and stock market performance measure tools in appraising return on IT investments.
|Commitee:||Greenfield, A. C., Noone, Kate|
|School Location:||United States -- Arizona|
|Source:||DAI-A 75/02(E), Dissertation Abstracts International|
|Subjects:||Accounting, Management, Finance|
|Keywords:||Firm performance, Information technology management, Return on investment, Stock market|
Copyright in each Dissertation and Thesis is retained by the author. All Rights Reserved
The supplemental file or files you are about to download were provided to ProQuest by the author as part of a
dissertation or thesis. The supplemental files are provided "AS IS" without warranty. ProQuest is not responsible for the
content, format or impact on the supplemental file(s) on our system. in some cases, the file type may be unknown or
may be a .exe file. We recommend caution as you open such files.
Copyright of the original materials contained in the supplemental file is retained by the author and your access to the
supplemental files is subject to the ProQuest Terms and Conditions of use.
Depending on the size of the file(s) you are downloading, the system may take some time to download them. Please be