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The relationship between information technology (IT) investment and firm's financial performance of public listed companies in Malaysia

Significant amounts of resources have been and continue to be invested in information technology (IT). Much of this investment is made on the basis of assumption that returns will occur. Prior studies have shown that IT investment increases firm’s performances and operational efficiency. Although...

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Main Author: Sani Stores, Fatima
Format: Thesis
Language:English
English
English
Published: 2015
Subjects:
HD28-70 Management. Industrial Management
Online Access:http://eprints.uthm.edu.my/1314/2/FARAH%20HAZWANI%20CHE%20HASSAN%20COPYRIGHT%20DECLARATION.pdf
http://eprints.uthm.edu.my/1314/1/24p%20FARAH%20HAZWANI%20CHE%20HASSAN.pdf
http://eprints.uthm.edu.my/1314/3/FARAH%20HAZWANI%20CHE%20HASSAN%20WATERMARK.pdf
http://eprints.uthm.edu.my/1314/
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spelling my.uthm.eprints.13142021-10-03T06:22:11Z http://eprints.uthm.edu.my/1314/ The relationship between information technology (IT) investment and firm's financial performance of public listed companies in Malaysia Sani Stores, Fatima HD28-70 Management. Industrial Management Significant amounts of resources have been and continue to be invested in information technology (IT). Much of this investment is made on the basis of assumption that returns will occur. Prior studies have shown that IT investment increases firm’s performances and operational efficiency. Although, IT investment by Malaysian public listed companies (PLCs) increases annually, but the investment is still insufficient. Additionally, empirical studies and scientific research on IT and firm’s performance in Malaysian PLCs are still lacking. The objective of this research work is to examine the relationship between IT investment and firm’s financial performance in Malaysian PLCs. Firm performance was measured by revenue, return on investment (ROI) and return on assets (ROA). A panel data analysis was applied to the data observed from 2009 to 2012. Data for three years on IT investment and firm’s performance was collected from a sample of 90 firms via annual reports. The result of regressing return on investment against IT investment indicates that there is a relationship between IT investment and return on investment. However, the result of regressing return on assets and revenue indicates that there is no relationship between IT investment and return on assets, IT investment and revenue respectively. The analysis provides useful implications for managers to better understand the relationship between IT investment and firms’ performance so that they can make wiser decisions to maximize the business value of their investments. 2015-01 Thesis NonPeerReviewed text en http://eprints.uthm.edu.my/1314/2/FARAH%20HAZWANI%20CHE%20HASSAN%20COPYRIGHT%20DECLARATION.pdf text en http://eprints.uthm.edu.my/1314/1/24p%20FARAH%20HAZWANI%20CHE%20HASSAN.pdf text en http://eprints.uthm.edu.my/1314/3/FARAH%20HAZWANI%20CHE%20HASSAN%20WATERMARK.pdf Sani Stores, Fatima (2015) The relationship between information technology (IT) investment and firm's financial performance of public listed companies in Malaysia. Masters thesis, Universiti Tun Hussein Onn Malaysia.
institution Universiti Tun Hussein Onn Malaysia
building UTHM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Tun Hussein Onn Malaysia
content_source UTHM Institutional Repository
url_provider http://eprints.uthm.edu.my/
language English
English
English
topic HD28-70 Management. Industrial Management
spellingShingle HD28-70 Management. Industrial Management
Sani Stores, Fatima
The relationship between information technology (IT) investment and firm's financial performance of public listed companies in Malaysia
description Significant amounts of resources have been and continue to be invested in information technology (IT). Much of this investment is made on the basis of assumption that returns will occur. Prior studies have shown that IT investment increases firm’s performances and operational efficiency. Although, IT investment by Malaysian public listed companies (PLCs) increases annually, but the investment is still insufficient. Additionally, empirical studies and scientific research on IT and firm’s performance in Malaysian PLCs are still lacking. The objective of this research work is to examine the relationship between IT investment and firm’s financial performance in Malaysian PLCs. Firm performance was measured by revenue, return on investment (ROI) and return on assets (ROA). A panel data analysis was applied to the data observed from 2009 to 2012. Data for three years on IT investment and firm’s performance was collected from a sample of 90 firms via annual reports. The result of regressing return on investment against IT investment indicates that there is a relationship between IT investment and return on investment. However, the result of regressing return on assets and revenue indicates that there is no relationship between IT investment and return on assets, IT investment and revenue respectively. The analysis provides useful implications for managers to better understand the relationship between IT investment and firms’ performance so that they can make wiser decisions to maximize the business value of their investments.
format Thesis
author Sani Stores, Fatima
author_facet Sani Stores, Fatima
author_sort Sani Stores, Fatima
title The relationship between information technology (IT) investment and firm's financial performance of public listed companies in Malaysia
title_short The relationship between information technology (IT) investment and firm's financial performance of public listed companies in Malaysia
title_full The relationship between information technology (IT) investment and firm's financial performance of public listed companies in Malaysia
title_fullStr The relationship between information technology (IT) investment and firm's financial performance of public listed companies in Malaysia
title_full_unstemmed The relationship between information technology (IT) investment and firm's financial performance of public listed companies in Malaysia
title_sort relationship between information technology (it) investment and firm's financial performance of public listed companies in malaysia
publishDate 2015
url http://eprints.uthm.edu.my/1314/2/FARAH%20HAZWANI%20CHE%20HASSAN%20COPYRIGHT%20DECLARATION.pdf
http://eprints.uthm.edu.my/1314/1/24p%20FARAH%20HAZWANI%20CHE%20HASSAN.pdf
http://eprints.uthm.edu.my/1314/3/FARAH%20HAZWANI%20CHE%20HASSAN%20WATERMARK.pdf
http://eprints.uthm.edu.my/1314/
_version_ 1738580845575274496
score 13.211869

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