Abstract

This paper examines the effects of ownership property on the relationship between IT investment and corporate performance of Chinese listed companies. Previous studies focused on the relationship between IT investment and firm performance. Few studies focused on the factors that affect the relationship. Based on the resource-based view and information asymmetry theory, this paper takes all listed companies in China from 2012 to 2018 as the research sample. We find that IT investment has a significant positive correlation with corporate performance and the ownership property has a negative moderating effect on the positive correlation between IT investment and company performance. We address endogeneity concerns with model regressions and fixed effect model. Finally, using the company performance data with a lag of one period for robustness testing, the results are robust.

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