The productivity paradox of information technology
Communications of the ACM
Beyond the productivity paradox
Communications of the ACM
Information Technology Effects on Firm Performance As Measured by Tobin's Q
Management Science
Keeping e-business in perspective
Communications of the ACM - Evolving data mining into solutions for insights
E-Commerce
Information Systems Research
The Impact of E-Commerce Announcements on the Market Value of Firms
Information Systems Research
Discovering potential and realizing value from information technology investments
Journal of Management Information Systems - Special issue: Impacts of information technology investment on organizational performance
Limits to Value in Electronic Commerce-Related IT Investments
Journal of Management Information Systems
Journal of Management Information Systems
Sorting through the dot bomb rubble: how did the high-profile e-tailers fail?
International Journal of Information Management: The Journal for Information Professionals
Information technology investments and firm value
Information and Management
Development and Validation of a Perceptual Instrument to Measure E-Commerce Performance
International Journal of Electronic Commerce
The Impact of Capabilities and Prior Investments on Online Channel Commitment and Performance
Journal of Management Information Systems
Information technology investments and firm value
Information and Management
Market reaction to application service provider (ASP) adoption: An empirical investigation
Information and Management
Pricing e-service quality risk in financial services
Electronic Commerce Research and Applications
Information Systems Frontiers
The Journal of Strategic Information Systems
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This study reexamines the value relevance of e-commerce announcements using an event study methodology. Event studies have become an increasingly popular technique for information systems research by giving researchers a tool to measure the notoriously elusive value of information technology. We find evidence that the traditional event study methodology may not provide an accurate measure of abnormal returns during periods of high market volatility, and propose an alternative methodology. The alternative methodology does not use an estimation period, and takes into account extreme or unusual market movements in the period in which the e-commerce announcement was made. Using the alternative methodology, we find evidence of positive abnormal returns for e-commerce announcements made in the fourth quarter of 1998, but no abnormal returns to e-commerce announcements made in the fourth quarter of 2000. We also find significant differences in value depending on the type of e-commerce initiative. In 2000, e-commerce initiatives with a digital product were valued significantly more than e-commerce initiatives with a tangible product, while in 1998 no such difference existed. In 1998, business-to-business e-commerce initiatives, e-commerce initiatives with a tangible product, and e-commerce initiatives by pure-play Internet firms were valued more than similar initiatives in 2000. The study makes a significant contribution for understanding the value of e-commerce initiatives in highly volatile markets and demonstrates how market values of e-commerce changed from 1998 to 2000. Furthermore, this study shows the importance of carefully considering both the time frame examined and the methodology used when assessing the value relevance of e-commerce initiatives as to avoid inflating the magnitude of any observed effects.