The Impact of Information Technology Spending on Future Performance

  title={The Impact of Information Technology Spending on Future Performance},
  author={Mark C. Anderson and Rajiv D. Banker and Nan Hu},
In this study, we investigate the association between information technology (IT) spending and future firm performance. Critics contend that greater expenditures on IT rarely lead to superior financial results, citing studies that compare firm performance to current IT spending. But valuation and stock-return studies have found a positive association between the market value of firms and their current IT spending or announcements of new IT initiatives. These observed relations are interpreted… CONTINUE READING


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