Market Reactions to Investments in Information Technology: Insight from Warsaw Stock Exchange

Proceedings of the Sixteenth Americas Conference on Information Systems, Lima, Peru, August 12-15, 2010

11 Pages Posted: 17 Aug 2010

See all articles by Dorota Dobija

Dorota Dobija

Kozminski University

Karol Marek Klimczak

Lodz University of Technology

Narcyz Roztocki

State University of New York at New Paltz - School of Business

Heinz Roland Weistroffer

Virginia Commonwealth University (VCU) - School of Business

Date Written: August, 15 2010

Abstract

Building on the Roztocki and Weistroffer (2009c) explanatory model, this study examines stock market reactions to announcements of information technology investments in Poland, an emerging market and transition economy. Based on 68 announcements by companies traded at the Warsaw Stock Exchange in the period 2002 to 2009, our study confirms some previously published results, but also shows that specific characteristics of announcements play a more important role than has been commonly assumed. Our results indicate that investors in Poland react more positively if systems are acquired from global rather than local vendors. Announcements about completed projects are more positively received than announcements about planned or in-progress projects. Furthermore, announcements in Polish, targeted at existing shareholders, are more likely to be received positively than similar announcements released in English, targeting global investors.

Keywords: Event studies, information technology, investments, Poland, transition economies

JEL Classification: G14

Suggested Citation

Dobija, Dorota and Klimczak, Karol Marek and Roztocki, Narcyz and Weistroffer, Heinz Roland, Market Reactions to Investments in Information Technology: Insight from Warsaw Stock Exchange (August, 15 2010). Proceedings of the Sixteenth Americas Conference on Information Systems, Lima, Peru, August 12-15, 2010, Available at SSRN: https://ssrn.com/abstract=1659280

Dorota Dobija

Kozminski University ( email )

ul. Jagiellonska 57/59
Warsaw, 03-303
Poland

Karol Marek Klimczak

Lodz University of Technology ( email )

Poland

Narcyz Roztocki (Contact Author)

State University of New York at New Paltz - School of Business ( email )

New Paltz, NY 12561
United States
(845)257-2935 (Phone)
(845)257-2947 (Fax)

HOME PAGE: http://www2.newpaltz.edu/~roztockn/

Heinz Roland Weistroffer

Virginia Commonwealth University (VCU) - School of Business ( email )

301 W Main Street
Richmond, VA 23284-4000
United States

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