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Author:Bharadwaj, A. S.
Bharadwaj, S. G.
Konsynski, B. R.
Title:Information technology effects on firm performance as measured by Tobin's q
Journal:Management Science
1999 : JUL, VOL. 45:7, p. 1008-1024
Index terms:Companies
Information technology
Performance appraisal
Models
USA
Freeterms:Operations research
Language:eng
Abstract:In spite of increasing anecdotal evidence that information technology (IT) assets contribute to firm performance and future growth potential of firms, the empirical results relating IT investments to firm performance measures have been equivocal. Tobin's q , a financial market-based measure of firm performance, is used, and the association btw. IT investments and firm q values are examined. The results, based on data from 1988-1993, indicate among other things that the inclusion of the IT expenditure variable in the model increased the variance explained in q significantly.
SCIMA record nr: 195682
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