Information Technology Effects on Firm Performance as Measured by Tobin's q

Published Online:https://doi.org/10.1287/mnsc.45.7.1008

References

  • Aaker David. Managing Brand Equity: Capitalizing on the Value of a Brand Name (1991) (Free Press, New York) Google Scholar
  • Ahituv N., Giladi R. Business success and information technology: Are they really related? Proc. Seventh Annual Conf. Management IS (1993) Tel Aviv University, Tel Aviv, IsraelGoogle Scholar
  • Alpar P., Kim M. A microeconomic approach to the measurement of information technology value. J. Management Inform. Systems (1990) 7(2):55–69CrossrefGoogle Scholar
  • Amit R., Livnat J. Efficient corporate diversification: Methods and implications. Management Sci. (1989) 35:879–897LinkGoogle Scholar
  • Amit R., Wernerfelt B. Why do firms reduce business risk? Acad. Management J. (1990) 33(September):520–533CrossrefGoogle Scholar
  • Attewell P.Information Technology and the Productivity Paradox (1993) (Mimeograph, City University of New York, New York) Google Scholar
  • Bain J. Relation of profit rate to industry concentration: American manufacturing 1936–1940. Quart. J. Econom (1951) 65(August):293–324CrossrefGoogle Scholar
  • Bain J.Barriers to New Competition (1956) (Harvard University Press, Cambridge, MA) CrossrefGoogle Scholar
  • Bakos Y. A strategic analysis of electronic marketplaces. MIS Quart. (1991) 15(3):295–312CrossrefGoogle Scholar
  • Bakos Y., Treacy M. E. Information technology and corporate strategy: A research perspective. MIS Quart. (1986) 10(2):107–119CrossrefGoogle Scholar
  • Ball R. The theory of stock market efficiency: Accomplishments and limitations. J. Appl. Corporate Finance (1995) 8(Spring):4–17CrossrefGoogle Scholar
  • Barua A., Kriebel H. C., Mukhopadhyay T. Information technologies and business value: An analytic and empirical investigation. Inform. Systems Res. (1995) 6(1):3–23LinkGoogle Scholar
  • Belcher L. W., Watson H. J. Assessing the value of Conoco's EIS. MIS Quart. (1993) 17(3):239–269CrossrefGoogle Scholar
  • Belsley D. A., Kuh E., Welsch R. E.Regression Diagnostics (1980) (John Wiley and Sons, New York) CrossrefGoogle Scholar
  • Ben-Horim M., Callen J. L. The cost of capital, Macaulay's duration, and Tobin's q. J. Financial Res. (1989) 12(Summer):143–156CrossrefGoogle Scholar
  • Benston G. The validity of profits-structure studies with particular reference to the FTC's line-of-business data. Amer. Econom. Rev. (1985) 75:37–67Google Scholar
  • Bharadwaj S. G., Waring G. Persistence in firm performance: The role of industry and firm-specific factors. (1997) . Working paper, Emory University, Atlanta, GAGoogle Scholar
  • Bound J., Cummins C., Griliches Z., Hall B. H., Jaffe A., Griliches Z. Who does R&D and who patents? R&D, Patents and Productivity (1984) (Chicago University Press, Chicago, IL) Google Scholar
  • Brynjolfsson E. The productivity paradox of information technology. Comm. ACM (1993) 35(Dec.):66–67CrossrefGoogle Scholar
  • Brynjolfsson E. Technology's true payoff. Information Week (1994) Special Issue, Oct 10):34–36Google Scholar
  • Brynjolfsson E., Hitt L. Paradox lost? Firm-level evidence on the returns to information systems spending. Management Sci. (1996) 42(4):541–558LinkGoogle Scholar
  • Buzzell Robert D., Gale Bradely T.The PIMS Principles: Linking Strategy to Performance (1987) (Free Press, New York) Google Scholar
  • Capon Noel, Farley John U., Hoenig Scott. Determinants of financial performance: A meta analysis. Management Sci. (1990) 36:1143–1159LinkGoogle Scholar
  • Chen K. C., Lee J. Accounting measures of business performance and Tobin's q theory. J. Accounting, Auditing and Finance (1995) 10(Summer):587–607CrossrefGoogle Scholar
  • Chung Kee H., Pruitt Stephen W. A simple approximation of Tobin's q. Financial Management (1994) 23(Autumn):70–74CrossrefGoogle Scholar
  • Cockburn I., Griliches Z. Industry effects and appropriability measures in the stock market's valuation of R&D and patents. AEA Papers and Proc. (1988) 78(May):419–423Google Scholar
  • Comanor William S., Wilson T. A.Advertising and Market Power (1974) (Harvard University Press, Cambridge, MA) Google Scholar
  • Copeland T. E., Weston J. F.Financial Theory and Corporate Policy (1983) (Addison-Wesley, Reading, MA) Google Scholar
  • Cron W. L., Sobol M. G. The relationship between computerization and performance: A strategy for maximizing the economic benefits of computerization. Inform. and Management (1983) 6:171–181CrossrefGoogle Scholar
  • Day G. S., Montgomery D. B. Diagnosing the experience curve. J. Marketing (1983) 47(Spring):44–58CrossrefGoogle Scholar
  • Demsetz H. Industry structure market rivalry, and public policy. J. Law and Econom. (1973) 16(April):1–19CrossrefGoogle Scholar
  • Dess G. G., Ireland R. D., Hitt M. A. Industry effects and strategic management research. J. Management (1990) 16(1):7–27CrossrefGoogle Scholar
  • Domowitz I., Hubbard R. G., Petersen B. C. Business cycles and the relationship between concentration and price-cost margins. Rand J. Econom. (1986) 17(Spring):1–17CrossrefGoogle Scholar
  • Dos Santos B. L., Peffers G. K., Mauer D. C. The impact of information technology investment announcements on the market value of the firm. Inform. Systems Res. (1993) 4(1):1–23LinkGoogle Scholar
  • Fama E. F. Efficient capital markets: A review of theory and empirical work. J. Finance (1970) 25:383–417CrossrefGoogle Scholar
  • Fama E. F. Efficient capital markets II. J. Finance (1991) 46:1575–1617CrossrefGoogle Scholar
  • Fisher F. M., McGowan J. J. On the misuse of accounting rates of return to infer monopoly profits. Amer. Econom. Rev. (1983) 73:82–97Google Scholar
  • GAAP Guide, College Edition (1998) (Harcourt Brace Publishing Professional, New York) Google Scholar
  • Gale B. T. Market share and rate of return. Rev. Econom. Statist. (1972) 54(November):412–423CrossrefGoogle Scholar
  • Griliches Z. Market value R&D and patents. Econom. Lett. (1981) 7:183–187CrossrefGoogle Scholar
  • Hall B. H. The stock market's valuation of R&D investment during the 1980's. AEA Papers and Proc. (1993) 70(2):259–264Google Scholar
  • Helmuth J. A. Tobin's q ratio and electric utility regulation. Rev. Bus. Econom. Ratio (1990) 25(Spring):1–11Google Scholar
  • Hirschey M. Intangible capital aspects of advertising and R&D expenditures. J. Indust. Econom. (1982) 30(June):375–390CrossrefGoogle Scholar
  • Hitt L., Brynjolfsson E. Productivity, business profitability, and consumer surplus: Three different measures of information technology value. MIS Quart. (1996) 20(2):121–142CrossrefGoogle Scholar
  • Hitt L., Brynjolfsson E. The three faces of IT value: Theory and evidence. Proc. Internat. Conf. Inform. Systems (1994) Vancouver, B.C.:263–277Google Scholar
  • Holthusen R. W., Larcker D. J. The financial performance of reverse leveraged buyouts. J. Financial Econom. (1996) 42(3):293–332CrossrefGoogle Scholar
  • Hoskisson R. E., Hitt M. A. Antecedents and performance outcomes of diversification: A review and critique of theoretical perspectives. J. Management (1990) 16(June):461–509CrossrefGoogle Scholar
  • Huselid M., Jackson S., Schuler R. S. Technical and strategic human resource management effectiveness as determinants of firm performance. Acad. Management J. (1997) 40(2):171–188CrossrefGoogle Scholar
  • Ives B., Learmonth G. P. The information system as a competitive weapon. Comm. ACM (1984) 12(3):1193–1201CrossrefGoogle Scholar
  • Ives B., Jarvenpaa S. L., Mason R. O. Global business drivers: Aligning information technology to global business strategy. IBM Systems J. (1993) 32(1):143–162CrossrefGoogle Scholar
  • Ives B. Distinguishing among competing theories of the market share effect. J. Marketing (1990a) 52(October):68–80Google Scholar
  • Ives B. Unobservable effects and business performance. Marketing Sci. (1990b) 9(Winter):74–85Google Scholar
  • Ives B., Aaker David A. Is market share all that it's cracked up to be? J. Marketing (1985) 49(Fall):11–22Google Scholar
  • Jain B. A., Kini O. Venture capitalist participation and the post-issue operating performance of IPO firms. Managerial and Decision Econom. (1995) 16:593–606CrossrefGoogle Scholar
  • Jarrell G. Change at the exchange: The causes and effects of deregulation. J. Law and Econom. (1984) 27(October):273–312CrossrefGoogle Scholar
  • Jarvenpaa S. L., Ives B. Information technology and corporate strategy: A view from the top. Inform. Systems Res. (1990) 1(4):351–376LinkGoogle Scholar
  • Kahn A. E.The Economics of Regulation: Principles and Institutions (1988) (MIT Press, Cambridge, MA) Google Scholar
  • Kauffman R. J., Weill P. An evaluative framework for research on the performance effects of information technology investments. Proc. Internat. Conf. Inform. Systems (1989) Boston, MACrossrefGoogle Scholar
  • King W., Hufnagel E., Grover V., Earl M. Using information technology for competitive advantage. Information Management: The Strategic Dimension (1988) (Oxford University Press, Cambridge, England) Google Scholar
  • Lang L. H. P., Litzenberger R. H. Dividend announcements: Cash flow signalling vs. free cash flow hypothesis? J. Financial Econom. (1989) 24:181–191CrossrefGoogle Scholar
  • Lang L. H. P., Stulz R. M. Tobin's q, corporate diversification and firm performance. J. Political Econom. (1994) 102:1248–1280CrossrefGoogle Scholar
  • Lichtenberg F. R. The output contribution of computer equipment and personnel: A firm level analysis. J. Econom. Innovation and New Technologies (1995) 3:201–217CrossrefGoogle Scholar
  • Lindenberg E. B., Ross S. A. Tobin's q ratio and industrial organization. J. Bus. (1981) 54(January):1–32CrossrefGoogle Scholar
  • Lloyd W. P., Jahera J. S. Firm-diversification effects on performance as measured by Tobin's q. Managerial and Decision Econom. (1994) 15:259–266CrossrefGoogle Scholar
  • Lubatkin M., Shrieves R. E. Towards reconciliation of market performance measures to strategic management research. Acad. Management Rev. (1986) 11(July):497–512CrossrefGoogle Scholar
  • Martin S. Market firm and economic performance. Monograph Series in Finance and Economics (1983) . Salomon Brothers Center for the Study of Financial Institutions, Graduate School of Business Administrative, New York University, New YorkGoogle Scholar
  • Martin S. Market power and/or efficiency. Rev. Econom. Statist. (1988) 70(August):331–335CrossrefGoogle Scholar
  • Mason E. S. Price and production policies of large-scale enterprise. Amer. Econom. Rev. (1939) 29(March):61–74Google Scholar
  • McGee J., Goldschmid Harvey. Efficiency and economies of size. Industrial Concentration: The New Learning (1974) (Little Brown & Co., Boston, MA) Google Scholar
  • Megna P., Mueller D. C. Profit rates and intangible capital. Rev. Econom. Statist. (1991) 632–642CrossrefGoogle Scholar
  • Megna P., Klock M. The impact of intangible capital on Tobin's q in the semiconductor industry. AEA Proc. Paper (1993) 83:265–269Google Scholar
  • Montgomery C., Wernerfelt B. Diversification, Ricardian rents, and Tobin's q. Rand J. Econom. (1988) 19(Winter):623–632CrossrefGoogle Scholar
  • Morck R., Yeung B. Why investors value multinationality. J. Bus. (1991) 64:165–187CrossrefGoogle Scholar
  • Nehls C., Quinn J., Guille B. Custodial package tracking at Federal Express. Managing Innovation: Cases from the Service Industries (1988) (National Academy Press, Washington, DC) Google Scholar
  • Nelson P. B. Advertising as information. J. Political Econom. (1974) 82(July/August):729–754CrossrefGoogle Scholar
  • Neter J., Wasserman W., Kutner M. H.Applied Linear Regression Models (1990) (Richard D. Irwin, Homewood, IL) Google Scholar
  • Nolan R. Note on estimating the value of the IT asset. (1994) . Harvard Business School Note #9-195-197 ,Cambridge, MAGoogle Scholar
  • Oster S. M.Modern Competitive Analysis (1990) (Oxford University Press, New York) Google Scholar
  • Park C. W., Jaworski B. J., MacInnes D. J. Strategic brand concept-image management. J. Marketing (1986) 50(October):135–145CrossrefGoogle Scholar
  • Parsons G. L. Information technology: A new competitive weapon. Sloan Management Rev. (1983) 25(1):3–13Google Scholar
  • Peltzman S. An evaluation of consumer protection legislation: The 1962 drug amendments. J. Political Econom. (1973) 81(September/October):1049–1091CrossrefGoogle Scholar
  • Perfect S. B., Wiles K. W. Alternative constructions of Tobin's q: An empirical comparison. J. Empirical Finance (1994) 1:313–341CrossrefGoogle Scholar
  • Porter M. Competitive strategy: Techniques for analyzing industries and competitors. (1980) (Free Press, New York) Google Scholar
  • Porter M. Competitive advantage. (1985) (Free Press, New York) Google Scholar
  • Quinn J. B. The intelligent enterprise a new paradigm. Acad. Management Executive (1992) 6(4):48–63CrossrefGoogle Scholar
  • Quinn J. B. Managing the intelligent enterprise: Knowledge and service based industries. Planning Rev. (1993) September/October:13–16CrossrefGoogle Scholar
  • Quinn J. B., Baily M. N. Information technology: Increasing productivity in services. Acad. Management Executive (1994) 8(3):28–51Google Scholar
  • Ramanujam V., Varadarajan P. Research on corporate diversification. Strategic Management J. (1988) 10:523–552CrossrefGoogle Scholar
  • Ravenscraft D. J. Structure-profit relationships at the line-of-business and industry level. Rev. Econom. Statist. (1983) 65(February):22–31CrossrefGoogle Scholar
  • Ravenscraft D. J., Scherer F. M. The lag structure of returns to research and development. Appl. Econom. (1982) 14(December):603–620CrossrefGoogle Scholar
  • Robins J., Wiersema M. F. A resource-based approach to the multibusiness firm: Empirical analysis of portfolio interrelationships and corporate financial performance. Strategic Management J. (1995) 16:277–299CrossrefGoogle Scholar
  • Roll R. A critique of the asset pricing theory's tests: Part I—On past and potential testability of theory. J. Financial Econom. (1977) 4(March):1073–1103Google Scholar
  • Salinger M. A. Tobin's q unionization, and the concentration-profits relationship. Rand J. Econom. (1984) 15(Summer):159–170CrossrefGoogle Scholar
  • Scherer F. M., Long W. F., Martin S., Mueller D. C., Pascoe G., Ravenscraft D. J., Scott J. T., Weiss L. W. The validity of studies with line-of-business data: A comment. Amer. Econom. Rev. (1987) 77(March):205–217Google Scholar
  • Schmalensee R. A model of advertising and product quality. J. Political Econom. (1978) 86(June):485–503CrossrefGoogle Scholar
  • Schroeter John R. Estimating the degree of market power in the beef packing industry. Rev. of Econom. Statist. (1988) 70(February):158–162CrossrefGoogle Scholar
  • Sethi V., King W. R. Development of measures to assess the extent to which an information technology application provides competitive advantage. Management Sci. (1994) 40(12):1601–1627LinkGoogle Scholar
  • Shepherd W. G. Tobin's q and the structure-performance relationship: Comment. Amer. Econom. Rev. (1986) 76(December):1205–1210Google Scholar
  • Simon C. J., Sullivan M. W. The measurement and determinants of brand equity: A financial approach. Marketing Sci. (1993) 12(Winter):28–52LinkGoogle Scholar
  • Smallwood D., Conlisk J. Product quality in markets where consumers are imperfectly informed. Quart. J. Econom. (1979) 93(February):1–23CrossrefGoogle Scholar
  • Smirlock M., Gilligan T., Marshall W. Tobin's q and the structure-performance relationship. Amer. Econom. Rev. (1984) 74(December):1051–1060Google Scholar
  • Stevens J. L. Tobin's q and the structure-performance relationship: Comment. Amer. Econom. Rev. (1990) 80(June):618–623Google Scholar
  • Stewart T. A. Your company's most valuable asset: Intellectual capital. Fortune (1994) October 3Google Scholar
  • Stewart T. A. Mapping corporate brainpower. Fortune (1995a) October 30Google Scholar
  • Stewart T. A. Getting real about brainpower. Fortune (1995b) November 27Google Scholar
  • Strassmann P. A.The Business Value of Computers (1990) (Information Economics Press, New Canaan, CT) Google Scholar
  • Szymanski D. M., Bharadwaj S. G., Varadarajan P. An analysis of the market share-profitability relationship. J. Marketing (1993) 57(July):1–18CrossrefGoogle Scholar
  • Telser L. G. Advertising and competition. J. Political Econom. (1964) 72(December):547–551Google Scholar
  • Tinaikar R. Information leverage theory: A process level approach to understanding the IT-performance linkage. Proc. Fifteenth Internat. Conf. Information Systems (1994) Dec. 14–17Vancouver British, Columbia, CanadaGoogle Scholar
  • Tobin J. A general equilibrium approach to monetary theory. J. Money Credit and Banking (1969) 1(February):15–29CrossrefGoogle Scholar
  • Tobin J. Monitary policies and the economy: The transmission mechanism. Southern Econom. J. (1978) 37(April):421–431CrossrefGoogle Scholar
  • Waring G. F. Industry difference in the persistence of firmspecific returns. Amer. Econom. Rev. (1996) 86(5):1253–1265Google Scholar
  • Weill P. The relationship between investment in information technology and firm performance: A study of the valve manufacturing sector. Inform. Systems Res. (1992) 3(4):307–333LinkGoogle Scholar
  • Weiss L. W., Goldschmidt Harvey. The concentration-profits relationship and antitrust. Industrial Concentration: The New Learning (1974) (Little Brown and Company, Boston, MA) 185–223Google Scholar
  • Wernerfelt B., Montgomery C. A. Tobin's q and the importance of focus in firm performance. Amer. Econom. Rev. (1988) 78(March):246–250Google Scholar
  • White R. E. Generic business strategies organizational context, and performance: An empirical investigation. Strategic Management J. (1980) 7(May–June):217–231Google Scholar
  • Wilson D., Banker R., Kauffman R., Mahmood M. A. Assessing the impact of information technology on organizational performance. Strategic Information Technology Management (1993) (Idea Group, Harrisburg, PA) Google Scholar
  • Wu W., Bjornson B. Value of advertising by food manufacturers as investment in intangible capital. Agribusiness (1996) 12:147–156CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.