The Impact Of B2B Exchange Membership On Firm Value: An Event Study Analysis
نویسنده
چکیده
Web-based B2B exchanges have experienced a significant growth in recent years. While some B2B exchanges have met with huge success, several others have failed to live up to expectations. There is hardly any systematic study to assess the value of B2B marketplaces for participating firms. Our research employs an event-study methodology to investigate the effect of various industry, firm, and exchange-related factors on the value-added to the firms joining a B2B exchange. We find that firm-type (manufacturing vs. non-manufacturing) significantly affects the gains to participating firms but the role of the firm in the marketplace (buyer, seller or both) is not significant. We also find that the exchange-governance mechanism (consortia-based vs. public) and its value-proposition (transactional, collaborative or both) significantly influence the valueadded to participating firms. These findings have significant implications for firms’ choices of online-marketplaces as well as for the design, and marketing strategies of online exchanges.
منابع مشابه
Impact of Buyback of Shares on Firm Value: An Empirical Evidence from India
The present study examines the impact of capital employed in buyback of shares on firm value for 180 firms listed in the Bombay Stock Exchange of India. The issue of buyback of shares in the period from 2006 to 2016 was examined. The firm value is measured by a proxy, enterprise value, as a substitute of share price. The results suggest that the firm value differs from pre and post buyback of s...
متن کاملComparing the Impact of Brand Value on Corporate Profit in B2B and B2C Businesses: A Case Study
In recent years, the importance of branding has dramatically increased on the ground that brands have the potential to be a source of long-term competitive advantages for any businesses. Although it seems that brand value, theoretically, has a significant impact on corporate profits, evaluating the brand value's influence level on corporate profits can give clear signals to both managers and in...
متن کاملThe Impact of Leverage on Firm Investment: Evidence from Tehran Stock Exchange
The impact of financial leverage on firm investment is one of the most important issues in corporate finance. Debt overhang reduces the incentives of shareholder–management coalition in controlling the firm to invest in positive net-present-value investment opportunities. On the other hand, firms without debt in their financial structure face with a new problem known as over-investment. T...
متن کاملAn Examination of the Relationship between Values at Risk and Expected Stock Return in Tehran’s Stock Exchange
Abstract The main objective of this study was to examine the relationship between Value at Risk (VaR) and expected returns from 2002 to 2013 in Tehran’s Stock Exchange. In this study parametric value at risk, which considers the distribution of returns as normal and the historical value at risk as abnormal, was used to test the presence of the volatility anomaly in the companies listed i...
متن کاملSpecial Section: Electronic Markets and Supply Chains
We examine B2B e-marketplace designs and how these strategic choices affect both operating and financial performance. A theory-driven framework conceptualizes e-marketplaces as network orchestrators that create value by creating exchange opportunities, and facilitating economic and social exchanges. The locus of impact of e-marketplaces ranges from the network, where it accrues to all firms pot...
متن کامل