Market reactions to E-business outsourcing announcements: an event study

Authors:
Manish Agrawal;Rajiv Kishore;H. Raghav Rao
Affiliations:
Department of Information Systems and Decision Sciences, University of S. Florida, Tampa, FL;Department of Management Science and Systems, State University of New York at Buffalo, Buffalo, NY;Department of Management Science and Systems, State University of New York at Buffalo, Buffalo, NY
Venue:
Information and Management
Year:
2006

Citing 32
Cited 16

Determinants of information technology outsourcing: a cross-sectional analysis

Journal of Management Information Systems
The effect of team composition on decision scheme, information search, and perceived complexity

Journal of Organizational Computing
A two-level investigation of information systems outsourcing

Communications of the ACM
A framework for identifying software project risks

Communications of the ACM
A theory of task/technology fit and group support systems effectiveness

MIS Quarterly
Arrangements for information technology governance: a theory of multiple contingencies

MIS Quarterly
A resource-based perspective on information technology capability and firm performance: an empirical investigation

MIS Quarterly
Risks of rapid application development

Communications of the ACM
A content-analytic longitudinal study of the drivers for information technology and systems outsourcing

ICIS '00 Proceedings of the twenty first international conference on Information systems
Software Risk Management: Principles and Practices

IEEE Software
Attention Shaping and Software Risk-A Categorical Analysis of Four Classical Risk Management Approaches

Information Systems Research
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
The effect of task uncertainty, decentralization and AIS characteristics on the performance of AIS: an empirical case in Taiwan

Information and Management
Does the market recognize IT-enabled competitive advantage?

Information and Management
A relationship perspective on IT outsourcing

Communications of the ACM - Mobile computing opportunities and challenges
Trust-building mechanisms utilized in outsourced IS development projects: a case study

Information and Management
eAirlines: strategic and tactical use of ICTs in the airline industry

Information and Management
Project Management: A Managerial Approach

Project Management: A Managerial Approach
An empirical investigation of IT outsourcing versus quasi-outsourcing in France and Germany

Information and Management
The language of quarterly reports as an indicator of change in the company's financial status

Information and Management
IS Outsourcing management competence dimensions: instrument development and relationship exploration

Information and Management
Information systems outsourcing: a study of pre-event firm characteristics

Journal of Management Information Systems
The effects of time pressure and completeness of information on decision making

Journal of Management Information Systems
Determinants of Sourcing During Technology Growth and Maturity: An Empirical Study of e-Commerce Sourcing

Journal of Management Information Systems
Identifying Software Project Risks: An International Delphi Study

Journal of Management Information Systems
Investment in Enterprise Resource Planning: Business Impact and Productivity Measures

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

Journal of Management Information Systems
Information technology investments and firm value

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

MIS Quarterly
From the vendor's perspective: exploring the value proposition in information technology outsourcing

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

MIS Quarterly

Does IT outsourcing create firm value?

Proceedings of the 2007 ACM SIGMIS CPR conference on Computer personnel research: The global information technology workforce
Value creation in information-based industries through convergence: A study of U.S. mergers and acquisitions between 1993 and 2005

Information and Management
A review of the IT outsourcing literature: Insights for practice

The Journal of Strategic Information Systems
Market reaction to application service provider (ASP) adoption: An empirical investigation

Information and Management
Firms' information security investment decisions: Stock market evidence of investors' behavior

Decision Support Systems
Market value of voluntary disclosures concerning information security

MIS Quarterly
Research Note---Returns to Information Technology Outsourcing

Information Systems Research
Impact of information systems outsourcing: a study of Indian banking sector

International Journal of Business Information Systems
Case study: IT project escalation: A case analysis within the UK NHS

International Journal of Information Management: The Journal for Information Professionals
Effects of firm and IT characteristics on the value of e-commerce initiatives: An inductive theoretical framework

Information Systems Frontiers
Are New IT-Enabled Investment Opportunities Diminishing for Firms?

Information Systems Research
An analysis of IT/IS outsourcing provider selection for small- and medium-sized enterprises in Taiwan

Information and Management
A hybrid decision tree based methodology for event studies and its application to e-commerce initiative announcements

ACM SIGMIS Database
Impact of Vendor Selection on Firms' IT Outsourcing: The Korea Experience

Journal of Global Information Management
The Effect of CRM Outsourcing on Shareholder Value: A Contingency Perspective

Management Science
Information technology outsourcing and non-IT operating costs: an empirical investigation

MIS Quarterly

Quantified Score

Hi-index	0.00

Visualization

Abstract

Stock markets have reacted favorably to firms who announced their implementation of E-business projects for commercial exploitation. Those that outsourced E-business projects in order to achieve swift execution also achieved abnormal positive returns. Contrary to expectations, outsourcing E-business projects with high task complexity also led to positive results. We analyzed the process and found that these three factors explained more than 20% of the variance in abnormal returns. The results were obtained from an event study of 96 E-business-related announcements, including those made by firms in the S&P500 index during 1999-2002. This paper contains information that should therefore help firms identify E-business projects for outsourcing.