While information technology (IT) has been transforming the business landscape for a long time now, it is only recently that empirical evidence demonstrating the positive impact of IT on firm performance has begun to accumulate. The strategic importance of a firm’s IT capabilities is prompting an increasing number of companies to appoint chief information officers (CIOs) to effectively manage these assets. Such moves are reflective of changes in top management thinking and policy regarding the role of IT and firms’ approaches to IT governance. This paper uses the event study methodology to examine market reactions to announcements of new CIO positions. Findings strongly support the notion that, for firms competing in industries undergoing IT-driven transformation, announcements of newly created CIO positions do indeed provoke positive reactions from the marketplace.