Wealth creation from information technology investments using the eva®

Journal of Computer Information Systems

Volumn 50, Issue 2, 2009, Pages 42-48

  Yao, Lee J ^a   Sutton, Steven G ^b   Chan, Siew H ^c  

^a LOYOLA UNIVERSITY   (United States)

^b UNIVERSITY OF CENTRAL FLORIDA   (United States)

^c WASHINGTON STATE UNIVERSITY   (United States)

Author keywords

Economic value added (eva ); Firm performance; Information technology spending; Market value added; Value based management

Indexed keywords

ECONOMIC VALUE ADDED; FIRM PERFORMANCE; INFORMATION TECHNOLOGY SPENDING; MARKET VALUES; VALUE-BASED MANAGEMENTS;

ECONOMIC ANALYSIS; ENTERPRISE RESOURCE PLANNING; FACTORY AUTOMATION; INDUSTRY; INFORMATION TECHNOLOGY; PRODUCTION CONTROL; PRODUCTION ENGINEERING;

INVESTMENTS;

EID: 77949555093     PISSN: 08874417     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (35)

1. Abrahams, A. S. and MacMillan, I. C. "IT-DDP: a novel methodology for assuring economic value from entrepreneurial Information Technology projects." Journal of Computer Information Systems (49:3), 2009, 1-10.
2. Bao, B. H and Bao, D. H. "Usefulness of value added and abnormal economics earnings: an empirical examination." Journal of Business Finance and Accounting (26), 1999, 253-255.
3. Barua, A., Kriebel, C. H. and Mukhopadhyay, T. "Information technologies and business value: An analysis and empirical investigation." Information Systems Research (6:1), 1995, 3-23.
4. Bhardwaj, A. S., Bharadwaj, S. G., and Konsynski, B. R. "Information technology effects on firm performance as measured by Tobin's q." Management Science (45:6), 1999, 1008-1024.
5. Biddle, G. C., Bowen, R. M. and Wallace, J. S. "Does EVA® beat earnings? Evidence on associations with stock returns and firm values." Journal of Accounting and Economics (24), 1997, 301-336.
6. Brynjolfsson, E. "The productivity paradox of information technology: Review and assessment." Communications of the ACM (36:12), 1993, 67-77.
7. Brynjolfsson, E. and Hitt, L. M. "Beyond the productivity paradox." Communications of the ACM (41:8), 1998, 49-56.
8. Cheng, C. S. A. and Lin, S. W. J. "When do firms revalue their assets upwards? Evidence from the UK." International Journal of Accounting and Information Management (17:2), 2009, 166-188.
9. Coles, J. W., McWilliams, V. B. and Sen, N. "An examination of the relationship of governance mechanisms to performance." Journal of Management (27), 2001, 23-50.
10. 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), 2007, 100-111.
11. Dehning, B., Dow, K. E., and Stratopoulos, T. "Information technology and organizational slack." International Journal of Accounting Information Systems (5:1), 2004, 51-63.
12. Dehning, B. and Richardson, V. J. "Returns on investments in information technology: A research synthesis." Journal of Information Systems (16:1), 2002, 7-30.
13. Fatemi, A., Desai, A. S. and Katz, J. P. "Wealth creation and managerial pay: MVA and EVA as determinants of executive compensation." Global Finance Journal (14), 2003, 159-179.
14. Hitt, L. and Brynjolfsson, E. "Productivity, business profitability, and consumer surplus; three different measures of information technological value." MIS Quarterly (20:2), 1996, 121-142
15. Hodak, M. "How EVA can help turn mid-sized firms into large companies." Journal of Applied Corporate Finance (8:3), 1994, 98-102.
16. Hubbell, W. W. "Combining economic value added and activitybased management" Cost Management (Spring), 1996, 18-29.
17. Ifenedo, P. "Interactions between organizational size, culture, and structure and some IT factors in the context of ERP success assessment: an exploratory investigation." Journal of Computer Information Systems (47:4), 2007, 28-44.
18. Im, K. S., Dow, K. E. and Grover, V. A. "A reexamination of IT investment and the market value of the firm-an event study methodology." Information Systems Research (12:1), 2001, 103-117.
19. Johnson, R. and Soenen, L. "Indicators of successful companies." European Management Journal (21:3), 2003, 364-369.
20. Lehn, K. and Makhija, A. "EVA and MVA as performance measures and signals for strategic change." Strategy and Leadership (May/June), 1996, 34-38.
21. Malmi, T. and Ikaheimo, S. "Value Based Management practices-some evidence form the field." Management Accounting Research (14), 2003, 235-254.
22. Mouritsen, J. "Driving growth: Economic Value Added versus Intellectual Capital." Management Accounting Research (9), 1998, 461-482.
23. Otley, D. "Performance management: A framework for management control systems research." Management Accounting Research (10), 1999, 363-382.
24. Pelapu, K., Bernard, V. and Healy, P. Business analysis & valuation: Using financial statements. Text and Cases. 2 ed. South-Western Publishing Co, Cincinnati, OH, 2000.
25. Peslak, A. R. "The importance of information technology: an empirical and longitudinal study of the annual reports of the 50 largest companies in the United States." Journal of Computer Information Systems (45:3), 2005, 32-42.
26. Rai, A., Patnayakuni, R. and Patnayakuni, N. 'Technology investment and business performance." Communications of the ACM (40:7), 1997, 89-97.
27. Shiely, J. "Is value management the answer?" Chief Executive (119), 1996, 54-57.
28. Stem, J. M., Stewart III, G. B. and Chew, D. H. "The EVA® financial management system." Journal of Applied Corporate Finance (8:2), 1994, 32-46.
29. Stern Stewart Performance 1000. Database Package Introduction and Documentation. Stern Stewart Management Services, New York, NY, 1996.
30. Stewart, G. The Quest for Value: A Guide for Senior Managers. Harper Collins, New York, NY, 1991.
31. Strassman, P. "Will big spending on computers guarantee profitability?" Datamation (43:2), 1997, 75-82.
32. Stratopoulos, T. and Denning, B. "Does successful investment in information technology solve the productivity paradox?" Information and Management (38), 2000, 103-117.
33. Tarn, K. Y. "The impact of information technology investments on firm performance and evaluation: evidence from newly industrialized economies." Information Systems Research (9:1), 1998, 85-98.
34. Uyemura, D. G., Kantor, C. C. and Perth, J. M. "EVA for banks: value creation, risk management, and profitability management." Journal of Applied Corporate Finance (10:3), 1996, 94-113.
35. Wallace, J. S. "Adopting residual income-based compensation plans: Do you get what you pay for?" Journal of Accounting and Economics (24), 1997, 275-300.