Measuring investment risk and reducing it by diversification

IT Investment and Firm Risk: The Risk Paradox?

Measuring the impact of information technology (IT) investment on firm performance is a long standing issue among both information systems (IS) and researchers in other disciplines. Most research to date on the impact of IT spending on firm performance has focused on the returns that IT investments can provide to firms. Initial studies showed no impact of IT investment and more recent studies h...

Reducing the debt: is it optimal to outsource an investment?

We deal with the problem of outsourcing the debt for a big investment, according two situations: either the firm outsources both the investment (and the associated debt) and the exploitation to a private consortium, or the firm supports the debt and the investment but outsources the exploitation. We prove the existence of Stackelberg and Nash equilibria between the firm and the private consorti...

Measuring and Mitigating Regulatory Risk in Private Infrastructure Investment

Mark Jamison is Director of the Public Utility Research Center (PURC), Warrington College of Business, University of Florida. Before joining PURC in 1996, he was Manager of Regulatory Policy at Sprint. Prior to joining Sprint, he worked nine years for state regulatory commission staffs at the Iowa Utilities Board and the Kansas Corporation Commission. He earned his PhD at the University of Flor...

Information Production, Corporate Investment and Diversification Discount

This paper offers a market microstructure based model to explain the well-documented diversification discount. While explicitly assuming that stock price conveys valuable information to the management, our model shows that the value loss from diversification is a function of the stock price informativeness. If more investors are willing to follow and actively trade a certain stock, more informa...

Cyber Insurance and IT Security Investment: Impact of Interdependence Risk