Title :
Exploring Impacts of IT Service Failure on Firm´s Market Value
Author :
Baek, Seung Ik ; Lee, Seung Jae ; Lim, Gyoo Gun
Author_Institution :
Hanyang Univ., Seoul
Abstract :
This study investigates the effects of IT service failures on market values of companies that announce their IT service failures. To measure the effects of IT service failures on stock prices of the responsible companies, we examine the stock price changes before and after IT service failure announcements. The results show that the stock price reactions to IT service failure announcements are negative. In addition, it finds that the stock prices of the responsible companies react to various types of IT service failures differently.
Keywords :
stock markets; IT service failure announcement; firm market value; stock market; stock price; Companies; Computer networks; Cost accounting; Enterprise resource planning; IEEE news; Information management; Information systems; Internet; Investments; Productivity; IT Service Failure; event methodology; market value;
Conference_Titel :
Networked Computing and Advanced Information Management, 2008. NCM '08. Fourth International Conference on
Conference_Location :
Gyeongju
Print_ISBN :
978-0-7695-3322-3
DOI :
10.1109/NCM.2008.127
