Investments in information technology (IT) do not always result in the expected tangible payoffs, and

the factors which influence the effect of IT investments on organizational performance are not well

understood. Stock market reaction is one approach to appraising IT investments. In this paper we

propose a conceptual model describing the factors that impact IT investments based on market

reaction findings of major event studies on IT implementation announcements. This preliminary model

may serve as a starting point to better understand the complex issue of stock movements related to IT