Proceedings of the 16th Pacific Asia Conference on Information systems 2012 | 2012
focused on announcement period returns based on the capital asset pricing model (CAPM). This approach
may have two sets of distinct but related limitations for many classes of IT events. First, the use of
announcement period assumes the market is efficient in its assimilation and pricing of all information
about the event. However, a firm not be aware of the organizational changes required for success of the IT
event, or may not have the incentive to disclose such information for competitive reasons. Either way, we
expect many types of IT events to be characterized by low information disclosure, which, along with
investor biases, is likely to impede efficient pricing of the IT event by financial markets. Second, event
studies in Information Systems (IS) largely rely on CAPM, which considers only systematic risks in the
pricing of expected returns on IT assets, and assumes that idiosyncratic or firm-specific risks are
eliminated through efficient diversification. Yet one of the foundations of the IS discipline is the notion
that IT matters, largely because firms have different capabilities to develop, deploy and manage IT
resources to create value. Thus there is a disconnect between a basic theoretical tenet of the IS field and
the methodology deployed to assess the value of IT events. We develop a framework involving the
maturity of the IT event and the scope of complementary changes to assess the extent of information
disclosure and idiosyncratic risk, which, in turn, indicate the suitability of different methodologies to
assess financial value of the IT event. We empirically illustrate our approach for the case of large scale IT
and IT-enabled outsourcing, and conclude with implications for future IS research.
Professor Deepa Mani is Professor of Information Systems and the Deputy Dean of Academic Programmes & Digital Learning at the Indian School of Business. Deepa’s research interests are at the intersection of technology, organisation, and society. She has demonstrated significant thought leadership on the business and policy implications of technological innovations and investments. Her research articles have been published in leading academic journals and extensively featured in refereed conference proceedings, edited book chapters, and popular media outlets. Deepa serves as a Senior Editor at Information Systems Research. Deepa’s research has also had widespread impact on business practice and policy. In recognition of her impact, she was awarded the prestigious INFORMS Information Systems Society (ISS) Practical Impacts Award in 2022.
Deepa has been appointed to serve on several expert committees of the Central and State governments to provide guidance on policies for the digital economy, digital interventions in key sectors, and catalyse grassroot impacts using technology. She also extensively coaches organizations, keynotes corporate leadership events, and conducts executive education in the areas of digital business models, digital transformation and technology product management.
Deepa completed her undergraduate education at St. Stephen’s College, Delhi University, Masters in Information Systems from Carnegie Mellon University, Pennsylvania, and her doctorate in Information Systems from the University of Texas, Austin.
