Does Information Technology Spend Impact On Company Performance? Evidence From Accounting And Market-Based Measures

Main Article Content

Durrel Ramrathan
Mabutho Sibanda

Keywords

Company Performance, Information Technology, Market Valuation, Earnings

Abstract

This study investigates the association between information technology spend and future company performance for a sample of companies where accounting and market value measures are used as proxies for performance. While the earnings measure indicated a strong positive relationship initiating early on, the profit margin and asset turnover measures provided some unexpected and mixed findings. However, Tobins q, a market valuation measure, indicated a strong positive relationship that supported the notion that investment in information technology can improve future company performance.

Downloads

Download data is not yet available.
Abstract 86 | PDF Downloads 80