Market reaction to application service provider (ASP) adoption: An empirical investigation

Authors:
Bong-Keun Jeong;Antonis C. Stylianou
Affiliations:
Department of Business Information Systems & Operations Management, The Belk College of Business Administration, University of North Carolina at Charlotte, Charlotte, NC 28223, United States;Department of Business Information Systems & Operations Management, The Belk College of Business Administration, University of North Carolina at Charlotte, Charlotte, NC 28223, United States
Venue:
Information and Management
Year:
2010

Citing 18
Cited 5

Exploring the supply-side of IT outsourcing: evaluating the emerging role of application service providers

European Journal of Information Systems
Research Report: A Reexamination of IT Investment and the Market Value of the Firm--An Event Study Methodology

Information Systems Research
The Impact of E-Commerce Announcements on the Market Value of Firms

Information Systems Research
Determinants of ASP choice: an integrated perspective

European Journal of Information Systems
The Effects of Power and Partnership on Application Service Provider Commitment, Cooperation, and Compliance

HICSS '04 Proceedings of the Proceedings of the 37th Annual Hawaii International Conference on System Sciences (HICSS'04) - Track 8 - Volume 8
Measuring Information Technology Payoff: A Meta-Analysis of Structural Variables in Firm-Level Empirical Research

Information Systems Research
A theory of application service provider (ASP) use from a client perspective

Information and Management
Executives' perceptions of the business value of information technology: a process-oriented approach

Journal of Management Information Systems - Special issue: Impacts of information technology investment on organizational performance
Market reactions to E-business outsourcing announcements: an event study

Information and Management
The value of IT to firms in a developing country in the catch-up process: An empirical comparison of China and the United States

Decision Support Systems
ERP Investments and the Market Value of Firms: Toward an Understanding of Influential ERP Project Variables

Information Systems Research
Reexamining the Value Relevance of E-Commerce Initiatives

Journal of Management Information Systems
The Shareholder-Wealth and Trading-Volume Effects of Information-Technology Infrastructure Investments

Journal of Management Information Systems
An exploratory study into factors of service quality for application service providers

Information and Management
Information technology investments and firm value

Information and Management
Examining the shareholder wealth effects of announcements of newly created CIO positions

MIS Quarterly
The value relevance of announcements of transformational information technology investments

MIS Quarterly
Review: information technology and organizational performance: an integrative model of it business value

MIS Quarterly

Information technology investment announcements and market value in transition economies: Evidence from Warsaw Stock Exchange

The Journal of Strategic Information Systems
Impact of Vendor Selection on Firms' IT Outsourcing: The Korea Experience

Journal of Global Information Management
The impact of Business Intelligence systems on stock return volatility

Information and Management
Does information technology investment influence a firm's market value? a case of non-publicly traded healthcare firms

MIS Quarterly
Case studies in research: Using balanced scorecards for the evaluation of "Software-as-a-service"

Information and Management

Quantified Score

Hi-index	0.00

Visualization

Abstract

We examined the impact of ASP adoption on the market value of the firms and explored contextual factors in the positive abnormal returns. We employed event study methodology to analyze 268 ASP adoption announcements from 1998 to 2007. The results indicated that ASP adoption announcements were associated with positive increases in the market value of the firm. In addition, differences in market returns to ASP adoption were found to depend on strategic adoption intent, firm size, industry, and vendor status. These results provide useful implications for making decisions about whether, when, and how to adopt ASP to maximize the business value.