The Electronic Journal of Information Systems Evaluation provides critical perspectives on topics relevant to Information Systems Evaluation, with an emphasis on the organisational and management implications
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Journal Issue
Volume 9 Issue 1 / Mar 2006  pp1‑43

Editor: Dan Remenyi

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Using Value‑at‑Risk for ISIT Project and Portfolio Appraisal and Risk Management  pp1‑6

Stefan Koch

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A Process Capability Approach to Information Systems Effectiveness Evaluation  pp7‑14

Sevgi Ozkan

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Evaluating e‑Commerce Success — A Case Study  pp15‑26

Shaun Pather, Dan Remenyi, Andre de la Harpe

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Stock Price Reaction to Investments in Information Technology: the Relevance of Cost Management Systems  pp27‑30

Narcyz Roztocki, Heinz Roland Weistroffer

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Abstract

The identification of conditions and factors under which investments in Information Technology (IT) can be expected to yield tangible returns is the subject of many productivity studies. Event study methodology, which examines the reaction in the stock price to announcements of different types of IT investments, is one approach to this kind of research. In the research presented in this paper, we use event study methodology to investigate the effect of cost management systems on payoffs from IT investments. The motivation for our research is based on the assumption that companies possessing reliable cost management systems, such as Activity‑Based Costing (ABC), are less likely to make expensive mistakes when investing in IT. Furthermore, the companies that use ABC and thus know the costs of their operation, are better able to single out those IT projects which positively impact the bottom line and competitiveness. In our study, we use a sample of three companies that are adopters of ABC, to examine the impact of 81 IT investment announcements on stock prices. 

 

Keywords: Activity-based costing, cost management systems, event study methodology, information technology productivity paradox

 

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A Framework for the Evaluation of Business Models and its Empirical Validation  pp31‑43

Jean-Paul Van Belle

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