Loading...

Media is loading
 

Paper Type

Complete

Description

Signaling theory has been used in a variety of disciplines. However, limited research attention has been given to signaling distortion on the signaler’s end. Focusing on firms as signalers, this paper examines the influence of firms’ risk-taking propensity on firms’ IT signaling behavior, in both IT signal volume and IT signal composition (or percentage). Data was collected from COMPUSTAT database and was also collected and coded, based on the extant IT signaling literature, from 160 corporate annual reports (i.e., form 10-K) of 32 companies in three industries across 5 fiscal years (i.e., 2011-2015). Findings suggest that high risk-taking propensity promotes firms’ signaling of automate IT investment and signaling different from industry’s dominant IT strategic role. Discussions, theoretical and practical implications, as well as limitation and future research are discussed.

Paper Number

1127

Comments

Conference Theme

Share

COinS
 
Aug 10th, 12:00 AM

Firms’ Risk-taking Propensity and IT Signaling Behavior

Signaling theory has been used in a variety of disciplines. However, limited research attention has been given to signaling distortion on the signaler’s end. Focusing on firms as signalers, this paper examines the influence of firms’ risk-taking propensity on firms’ IT signaling behavior, in both IT signal volume and IT signal composition (or percentage). Data was collected from COMPUSTAT database and was also collected and coded, based on the extant IT signaling literature, from 160 corporate annual reports (i.e., form 10-K) of 32 companies in three industries across 5 fiscal years (i.e., 2011-2015). Findings suggest that high risk-taking propensity promotes firms’ signaling of automate IT investment and signaling different from industry’s dominant IT strategic role. Discussions, theoretical and practical implications, as well as limitation and future research are discussed.

When commenting on articles, please be friendly, welcoming, respectful and abide by the AIS eLibrary Discussion Thread Code of Conduct posted here.