Understanding IT Governance Effectiveness in Asia: An Event Study | Zendy

Josephine Chong | Zendy; Linh Duong | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Open Access

Understanding IT Governance Effectiveness in Asia: An Event Study

Author(s) -

Josephine Chong,

Linh Duong

Publication year - 2017

Publication title -

pacific asia journal of the association for information systems

Language(s) - English

Resource type - Journals

eISSN - 1943-7544

pISSN - 1943-7536

DOI - 10.17705/1pais.09102

Subject(s) - corporate governance , business , profitability index , sample (material) , process (computing) , accounting , event (particle physics) , event study , information technology , industrial organization , finance , computer science , physics , quantum mechanics , paleontology , chemistry , context (archaeology) , chromatography , biology , operating system

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.

The content you want is available to Zendy users.

Already have an account? Click here to sign in.

Having issues? You can contact us here

Accelerating Research