Loading…

Understanding IT Governance Effectiveness in Asia: An Event Study

The study seeks to examine the impact of Information technology (IT) governance structure, process and relational mechanisms on firm performance. Using an event study, we collected a sample of 70 announcements of IT governance adoption investments. We found that most firms adopt all three types of I...

Full description

Saved in:
Bibliographic Details
Published in:Pacific Asia journal of the Association for Information Systems 2017-04, Vol.9 (1), p.29-54
Main Authors: Chong, Josephine L. L., Duong, Linh N. K.
Format: Article
Language:English
Subjects:
Citations: Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The study seeks to examine the impact of Information technology (IT) governance structure, process and relational mechanisms on firm performance. Using an event study, we collected a sample of 70 announcements of IT governance adoption investments. We found that most firms adopt all three types of IT governance mechanisms. IT governance structural mechanisms have a positive impact on firm’s profitability. In contrast, IT governance process and relational mechanisms have a negative association with firm performance. More interestingly, the findings provide insight for organizations that they should realize the potentially negative impact of the controls requirements of Sarbanes-Oxley Act Section 404 and IT leadership on firm performance. Available at: https://aisel.aisnet.org/pajais/vol9/iss1/3/
ISSN:1943-7544
1943-7536
1943-7544
DOI:10.17705/1pais.09102