Start Date
10-12-2017 12:00 AM
Description
Mobile application market shows an unprecedented prospect. This research employs the event study methodology to examine the short-term effect of mobile initiative on firm value in the period of 2008 to 2016. Our findings show that overall the stock market reacts negatively to the launch of mobile apps by public firms. In addition, we find that the negative market reaction mainly comes from mobile initiative by late followers in the mobile market and small firms. This research is the first study to empirically test the value relevance of IT investment in the form of mobile app development and provides important managerial implications for companies that plan to enter the mobile app market.
Recommended Citation
Yuan, Ziqing; Chen, Hailiang; and Ling Sia, Choong, "Mobile Initiative and Firm Equity Value: An Event Study" (2017). ICIS 2017 Proceedings. 25.
https://aisel.aisnet.org/icis2017/Strategy/Presentations/25
Mobile Initiative and Firm Equity Value: An Event Study
Mobile application market shows an unprecedented prospect. This research employs the event study methodology to examine the short-term effect of mobile initiative on firm value in the period of 2008 to 2016. Our findings show that overall the stock market reacts negatively to the launch of mobile apps by public firms. In addition, we find that the negative market reaction mainly comes from mobile initiative by late followers in the mobile market and small firms. This research is the first study to empirically test the value relevance of IT investment in the form of mobile app development and provides important managerial implications for companies that plan to enter the mobile app market.