Impact of e-business initiatives on firm value

Ho Geun Lee, Dong Hwan Cho, Seong Chul Lee

Research output: Contribution to journalArticle

12 Citations (Scopus)

Abstract

A growing number of firms are competitively entering into e-Business because they see the high potential of e-Business growth as an opportunity. The positive expectation of the e-Business market leads most firms to go into e-Business, but it is not clear what kinds of benefits firms gain through e-Business. In this paper, we examine whether firms' economic benefits are related to e-Business activities. For this purpose, we employ event study methodology and assess the cumulative abnormal returns for 782 e-Business initiatives by firms listed in Korean capital markets. The well-known Dot Com Effect is verified empirically by this study. The results of this study indicate that e-Business potential is highly valued in the capital market, and e-Business firms are expected to create significant benefits in the future period.

Original languageEnglish
Pages (from-to)41-56
Number of pages16
JournalElectronic Commerce Research and Applications
Volume1
Issue number1
DOIs
Publication statusPublished - 2002 Dec 1

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Industry
Firm value
Electronic business
Economics
Financial markets
Capital markets

All Science Journal Classification (ASJC) codes

  • Computer Science Applications
  • Computer Networks and Communications
  • Marketing
  • Management of Technology and Innovation

Cite this

Lee, Ho Geun ; Cho, Dong Hwan ; Lee, Seong Chul. / Impact of e-business initiatives on firm value. In: Electronic Commerce Research and Applications. 2002 ; Vol. 1, No. 1. pp. 41-56.
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Impact of e-business initiatives on firm value. / Lee, Ho Geun; Cho, Dong Hwan; Lee, Seong Chul.

In: Electronic Commerce Research and Applications, Vol. 1, No. 1, 01.12.2002, p. 41-56.

Research output: Contribution to journalArticle

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