A systematic design for coping with model risk
Expert Systems with Applications: An International Journal
Information Technology and Firm Boundaries: Impact on Firm Risk and Return Performance
Information Systems Research
Resolving uncertainty and creating value from the exercise of e-commerce investment options
Information Systems Journal
Are New IT-Enabled Investment Opportunities Diminishing for Firms?
Information Systems Research
Risk and return of IT investment: evidence from SCM and CRM announcements
International Journal of Networking and Virtual Organisations
Research Note---Using Real Options to Investigate the Market Value of Virtual World Businesses
Information Systems Research
Social Media and Firm Equity Value
Information Systems Research
Journal of Management Information Systems
The impact of Business Intelligence systems on stock return volatility
Information and Management
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This paper takes an event study approach to jointly examine the wealth and risk effects associated with electronic commerce announcements, contributing to the emerging research on the riskiness of IT investments and the trade-off between risk and return in the information systems literature. We estimate a generalized event study model that allows for both systematic and unsystematic risk changes on data collected for electronic commerce announcements in the 1996--2002 time frame. A striking result emerging from our analysis is that wealth effects are not significant after controlling for contemporaneous risk changes. Both total and unsystematic risk show a significant postevent increase in 1998 and 2000, whereas systematic risk adjusts downward in 1996 and 2002. Put together, our results contribute to our nascent understanding of how IT initiatives affect the risk-return profile of the firm.