Business Administration 3300K Study Guide - Quiz Guide: Corporate Governance Of Information Technology
11 Nov 2020
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Research approach: sample of it failure events using four-phase process + 17 terms to identify failure events. Event coding: failure events subjected to content analysis and coded for failure type (operating / implementation) and failure severity (low, medium, high) Control variables: controlled for 1) firm size 2) firm growth rate 3) industry intensiveness 4) industry type (manufacturing/service) Event study methodology: estimation of abnormal stock price: based on market model of daily stock price returns. Rq1: how much do investors care about it failures: decline in market value: nearly 2% in stock price decline after it failures, decline average is greater than positive market value effect concerning intra-firm it investments (0. 09- Clear result that investors do care about it failures. Rq2: do failure circumstances impact market"s assessment: more negative response to: implementation failures, more severe failures, firms with history of it failures.
