Information technology investments: Does activity based costing matter?

Journal of Computer Information Systems

Volumn 50, Issue 2, 2009, Pages 31-41

  Roztocki, Narcyz ^a,b   Weistroffer, Heinz Roland ^a,b  

^a STATE UNIVERSITY OF NEW YORK   (United States)

^b VIRGINIA COMMONWEALTH UNIVERSITY   (United States)

Author keywords

Cost management system; Event study; Information technology success; Market value

Indexed keywords

ACTIVITY BASED COSTING; BUSINESS PRACTICES; COST MANAGEMENT SYSTEMS; EVENT STUDIES; INFORMATION TECHNOLOGY INVESTMENTS; INTERNAL AND EXTERNAL FACTORS; MARKET VALUES; RESOURCE-BASED VIEW;

COMMERCE; INFORMATION TECHNOLOGY; MANAGEMENT;

INVESTMENTS;

EID: 77949544244     PISSN: 08874417     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (72)

1. Aggarwal, N., Dai, Q., and Waiden, E. A. "Do Markets Prefer Open or Proprietary Standards for XML Standardization?" International Journal of Electronic Commerce (11:1), 2006, pp. 117-136.
2. Agrawal, M., Kishore, R., and Rao, R.H. "Market Reactions to E-business Outsourcing Announcements: An Event Study," Information & Management (43:7), 2006, pp. 861-873.
3. Andoh-Baidoo, F.K. and Osei-Bryson, K.-M. "Exploring the Characteristics of Internet Security Breaches that Impact the Market Value of Breached Finns," Expert Systems with Applications (32:3), 2007, pp. 703-725.
4. Barney, J. "Firm Resources and Sustained Competitive Advantage," Journal of Management (17:1), 1991, pp. 99-120.
5. Barsky, R.B. and De Long, J.B. "Bull and Bear Markets in the Twentieth Century," Journal of Economic History (50:2), 1990, pp. 265-281.
6. Benbunan-Fich, R. and Fich, E.M. "Effects of Web Traffic Announcements on Firm Value," International Journal of Electronic Commerce (8:4), 2004, pp. 161-181.
7. Benbunan-Fich, R. and Fich, E.M. "Measuring the Value of Refining a Web Presence," Journal of Electronic Commerce in Organizations (3:1), 2005, pp. 35-52.
8. Binder, J.J. "The Event Study Methodology Since 1969," Review of Quantitative Finance and Accounting (11:2), 1998, pp. 111-137.
9. Brown, S.J. and Warner, J.B. "Using Daily Stock Returns: The Case of Event Studies," Journal ofFinancial Economics (14:1), 1985, pp. 3-31.
10. Brynjolfsson, E. "The Productivity Paradox of Information Technology," Communications of the ACM (36:12), 1993, pp. 67-77.
11. Carr, N.G. "IT Doesn't Matter," Harvard Business Review (81:5), 2003, pp. 41-49.
12. Castanias, R. and Helfat, C.E. "Managerial Resources and Rents," Journal of Management (17:1), 1991, pp. 155-171.
13. Chatterjee, D., Richardson, V. J., and Zmud, R. W. "Examining the Shareholder Wealth Effects of Announcements of Newly Created CIO Position," MIS Quarterly (25:1), 2001, pp. 43-70.
14. Chatterjee, D., Pacini, C., and Sambamurthy, V. "The Shareholder-Wealth and Trading-Volume Effects of Information-Technology Infrastructure Investments," Journal of Management Information Systems (19:2), 2002, pp. 7-42.
15. Cooper, R. "The Rise of Activity-Based Costing - Part One: What is an Activity-Based Cost System?" Journal of Cost Management (2:Summer), 1988, pp. 45-54.
16. Cooper, R. and Kaplan, R.S. "Measure Cost Right: Make the Right Decisions," Harvard Business Review (66:5), 1988, pp. 96-103.
17. Cooper, R. "The Rise of Activity-Based Costing - Part Three: How Many Cost Drivers Do You Need, and How Do You Select Them?" Journal of Cost Management (2: Winter), 1989, pp. 34-46.
18. Cooper, R. and Kaplan, R.S. "Activity-Based Systems: Measuring the Costs of Resources Usage," Accounting Horizons (6:3), 1992, pp. 1-13.
19. Dardan, S., Stylianou, A., and Kumar, R. "The Impact of Customer-Related IT Investments on Customer Satisfaction and Shareholder Returns," Journal of Computer Information Systems (47:2), 2006, pp. 100-111.
20. Denning, B., Richardson, V.J., and Zmud, R.W. "The Value Relevance of Announcements of Transformational Information Technology Investments," MIS Quarterly (27:4), 2003, pp. 637-656.
21. Denning, B., Richardson, V.J., Urbaczewski, A., and Wells, J.D. "Reexamining the Value Relevance of E-Commerce Initiatives," Journal of Management Information Systems (21:1), 2004, pp. 55-82.
22. Dos Santos, B.L., Peffers, K., and Mauer, D. "The Impact of Information Technology Investment Announcements on the Market Value of the Firm," Information Systems Research (4:1), 1993, pp. 1-23.
23. Ettredge, M.L. and Richardson, V.J. "Information Transfer among Internet Firms: The Case of Hacker Attacks," Journal of Information Systems (17:2), 2003, pp. 71-82.
24. Fama, E.F., Fisher, L., Jensen, M.C., and Roll, R. "The Adjustments of Stock Prices to New Information," International Economic Review (10:1), 1969, pp. 1-21.
25. Fama, E.F. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance (25:2), 1970, pp. 383-417.
26. Fama, E.F. "Efficient Capital Markets: II," Journal of Finance (46:5), 1991, pp. 1575-1617.
27. Ferguson, C., Finn, F., and Hall, J. "Electronic Commerce Investments, the Resource-based View of the Firm, and Firm Market Value," International Journal of Accounting Information Systems (6:1), 2005, pp. 5-29.
28. Fuller, R.J. and Wong, G.W. 'Traditional versus Theoretical Risk Measures," Financial Analysts Journal (44:2), 1988, pp. 52-57.
29. Gordon, L.A. and Silvester, K.J. "Stock Market Reactions to Activity-Based Costing Adoptions," Journal of Accounting and Public Policy (18:3), 1999, pp. 229-251.
30. Gulati, R. and Higgins, M.C. "Which Ties Matter when? The Contingent Effects of Interorganizational Partnerships on IPO Success," Strategic Management Journal (24:2), 2003, pp. 127-144.
31. Hayes, D.C., Hunton, J.E., and Reck, J. "Information Systems Outsourcing Announcements: Investigating the Impact on the Market Value of the Contact-Granting Firms," Journal of Information Systems (14:2), 2000, pp. 109-125.
32. Hayes, D.C., Hunton, J.E., and Reck, J.L. "Market Reaction to ERP Implementation Announcements," Journal of Information Systems (15:1), 2001, pp. 3-18.
33. Hitt, L.M. and Brynjolfsson, E. "Productivity, Business Profitability and Consumer Surplus: Three Different Measures of Information Technology Value," MIS Quarterly (20:2), 1996, pp. 121-142.
34. Hovav, A. and D'Arcy, J. "The Impact of Denial-of-Service Attack Announcements on the Market Value of Firms," Risk Management & Insurance Review (6:2), 2003, pp. 97-121.
35. Hovav, A. and D'Arcy, J. "Capital Market Reaction to Defective IT Products: The Case of Computer Viruses," Computers & Security (24:5), 2005, pp. 409-424.
36. Hunter, S.D. "Information Technology, Organizational Learning, and the Market Value of the Firm," Journal of Information Theory and Application (5:1), 2003, pp. 1-28.
37. Im, K.S., Dow, K.E., and Graver, V. "Research Report: A Reexamination of IT Investment and the Market Value of the Firm an Event Study Methodology," Information Systems Research (12:1), 2001, pp. 103-117.
38. Irani, Z., Themistocleous, M., and Love, P.E.D. "The Impact of Enterprise Application Integration on Information System Lifecycles," Information & Management (41:2), 2003, pp. 177-187.
39. Johannesson, P. and Perjons, E. "Design Principles for Process Modelling in Enterprise Application Integration," Information Systems (26:3), 2001, pp. 165-184.
40. Johnson, H.T. "The Decline of Cost Management: A Reinterpretation of 20th-century Cost Accounting History," Journal of Cost Management (1:Spring), 1987, pp. 5-12.
41. Kaplan, R.S. and Anderson, S.R. "Time-Driven Activity-Based Costing," Harvard Business Review (82:11), 2004, pp. 131-138.
42. Koh, J. and Venkatraman, N. "Joint Venture Formation and Stock Market Reaction: An Assessment in the Information Technology Sector," Academy of Management Journal (34:4), 1991, pp. 869-892.
43. Kohli, R. and Grover, V. "Business Value of IT: An Essay on Expanding Research Directions to Keep up with the Tunes," Journal of the Association for Information Systems (9:1), 2008, pp. 23-39.
44. Lintner, J. "The Evaluation of Risk Assets and the Selection of Risky Investments in Stock Portfolios and Capital Budgets," Review of Economics and Statistics (47:1), 1965, pp. 13-37.
45. Lubatkin, M.H., Chung, K.H., Rogers, R.C., and Owens, J.E. "Stockholder Reaction to CEO Changes in Large Corporations," Academy of Management Journal (32:1), 1989, pp. 47-68.
46. Markides, C.C. "Consequences of Corporate Refocusing: Ex Ante Evidence," Academy of Management Journal (35:2), 1992, pp. 398-412.
47. Mata, F.J., Fuerst, W.L., and Barney, J.B. "Information Technology and Sustained Competitive Advantage: A Resource-Based Analysis," MIS Quarterly (19:4), 1995, pp. 487-505.
48. McWilliams, A. and Siegel, D. "Event Studies in Management Research: Theoretical and Empirical Issues," Academy of Management Journal (40:3), 1997, pp. 626-657.
49. Meng, Z. and Lee, S.-Y.T. "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 (43:3), 2007, pp. 737-745.
50. Morris, S.A. and Strickland, T.H. "Exploration of Information System Process Improvements and Firm Performance," Journal of Computer Information Systems (49:2), 2008, pp. 86-91.
51. Nagm, F. and Kautz, K. "The Market Value Impact of IT Investments Announcements - An Event Study," Journal of Information Technology Theory and Applications (9:3), 2008, pp. 61-79.
52. Ness, J.A. and Cucuzza, T.G. "Tapping the Full Potential of ABC," Harvard Business Review (73:4), 1995, pp. 130-138.
53. Ocasio, W. 'Towards an Attention-Based View of the Firm," Strategic Management Journal (18:Summer Special Issue), 1997, pp. 187-206.
54. Oh, W., Gallivan, M.J., and Kim, J.W. "The Market's Perception on the Transactional Risks of Information Technology Outsourcing Announcements," Journal of Management Information Systems (22:4), 2006, pp. 271-303.
55. Oh, W., Kim, J.W., and Richardson, V.J. "The Moderating Effect of Context on the Market Reaction to IT Investments," Journal of Information Systems (20:1), 2006, pp. 19-44.
56. Oz, E. "Information Technology Productivity: In Search of a Definite Observation," Information & Management (42:6), 2005, pp. 789-798.
57. Peacock, E. and Tanniru, M. "Activity-based Justification of IT Investments," Information & Management (42:3), 2005, pp. 415-424.
58. Puschmann, T. and Alt, R. "Enterprise Application Integration Systems and Architecture - the Case of the Robert Bosch Group," Journal of Enterprise Information Management (17:2), 2004, pp. 105-116.
59. Raghu, T.S., Wo, W., Mohan, S.B., and Rao, H.R. "Market Reaction to Patent Infringement Litigations in the Information Technology Industry," Information Systems Frontiers (10:1), 2008, pp. 61-75.
60. Ranganathan, C. and Brown, C.V. "ERP Investments and the Market Value of Firms: Toward an Understanding of Influential ERP Project Variables," Information Systems Research (17:2), 2006, pp. 145-161.
61. Roztocki, N., Porter, J.D., Thomas, R.M., and Needy, K.L. "A Procedure for Smooth Implementation of Activity-Based Costing in Small Companies," Engineering Management Journal (16:4), 2004, pp. 19-27.
62. Roztocki, N. and Weistroffer, H.R. "Evaluating Investments Technology Investments: A Fuzzy Activity-Based Costing Approach," Journal of Information Science & Technology (2:4), 2005, pp. 30-43.
63. Roztocki, N. and Weistroffer, H.R. "Stock Price Reaction to the Investments in IT: Relevance of Cost Management Systems," Electronic Journal of Information Systems Evaluation (9:1), 2006, pp. 27-30.
64. Roztocki, N. and Weistroffer, H.R., "Stock Price Reaction to Investments in EAI and ERP: A Comparative Event Study," Proceedings of the 41th Hawaii International Conference on System Sciences (HICSS), Waikoloa, Big Island, Hawaii, 2008.
65. Roztocki, N. and Weistroffer, H.R., "The Impact of Enterprise Application Integration on Stock Prices," Journal of Enterprise Information Management (22:6), 2009, pp. 709-721.
66. Sharpe, W.F. "Capital Asset Prices: A Theory of Market Equilibrium under Conditions of Risk," Journal of Finance (19:3), 1964, pp. 425-442.
67. Subramani, M. and Walden, E. "The Impact of E-commerce Announcements on the Market Value of Firms," Information Systems Research (12:2), 2001, pp. 135-154.
68. Telang, R. and Wattal, S. "An Empirical Analysis of the Impact of Software Vulnerability Announcements on Firm Stock Price," IEEE Transactions on Software Engineering (33:8), 2007, pp. 544-557.
69. Themistocleous, M., Irani, Z., and Love, P.E.D. "Evaluating the Integration of Supply Chain Information Systems: A Case Study," European Journal of Operational Research (159:2), 2004, pp. 393-405.
70. Wernerfelt, B. "A Resource-based View of the Firm," Strategic Management Journal (5:2), 1984, pp. 171-180.
71. Wernerfelt, B. "The Resource-based View of the Firm: Ten Years After," Strategic Management Journal (16:3), 1995, pp. 171-174.
72. Worrell, D. L., Davidsonm, W. N., and Sharma, V. M. "Layoff Announcements and Stockholder Wealth," Academy of Management Journal (34:3), 1991, pp. 662-678.