TY - GEN
T1 - Impact of Cloud Computing Announcements on Firm Valuation
AU - Parameswaran, Srikanth
AU - Venkatesan, Srikanth
AU - Gupta, Manish
AU - Sharman, Raj
AU - Rao, H. R.
N1 - Publisher Copyright: © 2011 AIS/ICIS Administrative Office. All rights reserved.
PY - 2011
Y1 - 2011
N2 - With increasing demand for Cloud Computing services, a growing number of firms are citing business agility and cost savings as motivators for adopting Cloud Computing services. Extant literature does not provide any empirical evidence of value of announcements made regarding the Cloud Computing environment. This paper examines impact of Cloud Computing announcements on firm valuation, using event study methodology. This study explores the market impact of adoption of Cloud Computing on the cloud vendors/providers and customers/adopters. The impact on firm value of the competitors, of the companies adopting Cloud Computing services, is also analyzed. The study shows that there is a significant impact of those announcements on the firm value of the companies. However, it shows a contrasting impact on the customers, vendors and their respective competitors, when analyzed separately.
AB - With increasing demand for Cloud Computing services, a growing number of firms are citing business agility and cost savings as motivators for adopting Cloud Computing services. Extant literature does not provide any empirical evidence of value of announcements made regarding the Cloud Computing environment. This paper examines impact of Cloud Computing announcements on firm valuation, using event study methodology. This study explores the market impact of adoption of Cloud Computing on the cloud vendors/providers and customers/adopters. The impact on firm value of the competitors, of the companies adopting Cloud Computing services, is also analyzed. The study shows that there is a significant impact of those announcements on the firm value of the companies. However, it shows a contrasting impact on the customers, vendors and their respective competitors, when analyzed separately.
KW - Cloud Computing
KW - Event Study
KW - Market Valuation
KW - Technology adoption
KW - business value
KW - firm performance
UR - https://www.scopus.com/pages/publications/84975464872
M3 - Conference contribution
SN - 9781618390981
T3 - 17th Americas Conference on Information Systems 2011, AMCIS 2011
BT - 17th Americas Conference on Information Systems 2011, AMCIS 2011
PB - AIS/ICIS Administrative Office
T2 - 17th Americas Conference on Information Systems 2011, AMCIS 2011
Y2 - 4 August 2011 through 8 August 2011
ER -