We examine i myopic behavior exists with respect to a firm's IT investments. Specifically, we examine if the market returns to IT investments are moderated by the investor time horizon, such that investors with shorter time horizons are more likely to reward firms that choose to invest their IT dollars on short-term (maintenance) projects rather than on long-term (new development) projects. our results indicate the possibility of significantly differential returns to the two types of IT expenditures based on the nature of the investor’s timing horizon.