Title: Information systems, human capital, and enterprise value

Authors: Runping Lou; Shengjia Xue; Defeng Yang

Addresses: School of Economy and Management, Zhaoqing University, Zhaoqing 526061, China. ' School of Management, Jinan University, Guangzhou 510632, China. ' School of Management, Jinan University, Guangzhou 510632, China

Abstract: By collecting 76 Chinese listed companies with a 2-13 year magnitude and approximately 360 samples of observations data, this paper empirically studies the relationship between information systems and enterprise value in the Chinese context by using GLS regression method. This study draws the following conclusions: 1) In the short term, the use of information systems has a statistically negative effect on enterprise value, and in reality, this negative impact is obviously significant, however, over a longer period of time, this negative impact decreases year by year, and has an effect of increasing marginal returns, showing a U-shape relationship. In the long run, the use of information systems has a statistically significant and positive impact on enterprise value. 2) The complementary influence between information systems and human capital on enterprise value is statistically positive.

Keywords: information technology; information systems; enterprise value; empirical research; complementarities theory; human capital; China.

DOI: 10.1504/IJSTM.2012.049015

International Journal of Services Technology and Management, 2012 Vol.18 No.1/2, pp.75 - 87

Available online: 09 Sep 2012 *

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