Our objective in this paper is to develop a firm value model to assist IT managers and researchers in understanding the multiple effects that IT investments have on firm value. This firm value approach adds to the process-oriented approach through simultaneous evaluation of all of the factors that affect firm value. It is crucial for IT professionals to recognize the complex and diverse implica...

Firm-level studies of the financial impacts of Information Technology (IT) events have often focused on announcement period returns based on the capital asset pricing model (CAPM). This approach may have two sets of distinct but related limitations for many classes of IT events. First, the use of announcement period assumes the market is efficient in its assimilation and pricing of all informat...

Managing firm risk, or firm performance volatility, is a key task for contemporary firms. Although information technology (IT) has been generally viewed as an effective information processing tool that enables firms to better cope with uncertainty, thus holding the potential to mitigate firm performance volatility, evidence to support this view is lacking in the literature. We theorize that ent...

We measure the importance of risk within a firm that pays its workers piece rates, exploiting data from payroll records and a series of field experiments conducted within the firm. These data are used to identify and estimate worker preferences, abilities and risk exposure. These estimates are combined to measure the workers’ cost of risk: their willingness to pay to avoid risky contracts. We f...

Is time-varying firm-level uncertainty a major cause or amplifier of the business cycle? This paper investigates this question in the context of a heterogeneous-firm RBC model with persistent firm-level productivity shocks and lumpy capital adjustment, where cyclical changes in uncertainty correspond naturally to cyclical changes in the cross-sectional dispersion of firm-specific Solow residual...

Textual data are an important information source for risk management for business organizations. To effectively recognize, extract, and analyze risk-related statements in textual data, these processes need to be automated. We developed a design framework for firm-specific risk statements guided by previous economic, managerial, and natural language processing research. Four information types (r...

This research proposes a novel MCDMmodel, including DEMATEL, ANP, and VIKOR for exploring portfolio selection based on CAPM. We probe into the influential factors and relative weights of risk-free rate, expected market return, and beta of the security. The purpose of this research is to establish an investment decision model and provides investors with a reference of portfolio selection most su...

The central aim of supply chain management, to have the right product in the right quantities (at the right place) at the right moment at minimal cost. Advancements in information technologies have enabled major innovations in the reengineering of industry's supply chains, redefining the ways companies operate their supply chains. New ventures have emerged to create values for business partners...