`A2p2 @@@ @@@@el=\2`2 EN DB 2     & .j1 / E O Zz9 Z E2u "( Adam19949) Benbunan-Fich2004> Benbunan-Fich2004/Bromiley19880 Brown1985  Brown19956 Chatterjee2001< Chatterjee2002 Chen2001 Chen2004% Cho2002& Christensen2000, Clark20019 Conover2002  Cummins2003 Curtis2003 D'Arcy2003 Dehning2003 Dekimpe2002* Dixon2004 Dombrow2000$ Dos Santos1993 Dow20011 Dyckman19842 Fama1969: Farag2003 Farrell2000) Fich2004F> Fich2004F Filson20042 Fisher19694Gallivan2004  Garg2003 Gatian1995& Gaver2000Geyskens2002' Giaccotto1996 Gielens2002/ Govekar1988 Grover2001 Gurbaxani2004 Halper20038 Hayes20005 Hayes2001 Hicks1995 Ho20040 Hogan1996 Hovav2003  Hunter20038 Hunton20005 Hunton2001 Im2001= Imai200322 Jensen1969 Kamssu2003 Karels20000( Kendall1994( Kendall1994 Khanna1998; Kim2001 Kraemer2004:Krishnan2003!Kritzman1994 Larsen1999 Lee2001% Lee2002% Lee2002 Lee2004 Lewis20037 Loh19923 MacKinlay1997/ Marcus19888$ Mauer1993 McClatchey2000*McKenzie2004- McWilliams1997Melville2004 Monfort2000; Oh20014 Oh2004< Pacini20022 Park20049 Peak2002$ Peffers1993.Peterson1989, Pettengill20011 Philbrick1984? Raganathan20018 Reck200005 Reck20010 Reithel2003 Resnick19996 Richardson2001 Richardson20031 Ricks1984 Rodriguez20002 Roll19696=Roztocki2003? Samarah2001< Sambamurthy2002'Sfiridis19966Shrestha2004- Siegel19971 Siems2001 Sirmans2000& Smith Bamber20001 Stephan1984 Subramani2001* Thomsen20047 Venkatraman1992 Walden200120 Warner1985 Wells20049 Windsor2002 Ziegelmayer20036 Zmud2001n Zmud2003n Zmud2003n1n Zmud2003n001n Zmud2003n1n Zmud2003n  0X AuthorsJournals -Keywords                                 2 h**Chen, Sheng-Syan**Dehning, Bruce**Dos Santos, Brian L**Melville, Nigel**Park, Namgyoo K*Becker, Joerg*Bharadwaj, Anandhi S*Brown, Robert M*Chen, Andrew H*Chen, Sheng-Syan*Cummins, J David*Dehning, Bruce*Dombrow, Jonathan*Dos Santos, Brian L*Farrell, Kathleen A*Filson, Darren *Garg, Ashish*Geyskens, Inge*Hogan, Stephen *Hovav, Anat*Hunter, Starling David *Im, Kun Shin*Kamssu, Aurore J.*Karake, Zeinab A *Khanna, Arun*Kritzman, Mark P*Larsen, Glen A. jr. *Lee, Peggy*Melville, Nigel*Park, Namgyoo K*Sriram, Ram S*Subramani, Mani Adam, NabilAffleck-Graves, John Bae, Sung CBayona, Cristina Becker, Joerg Beers, M. C.Benbunan-Fich, R.Benbunan-Fich, RaquelBerger, Allen NBharadwaj, Anandhi SBharadwaj, Sundar GBromiley, PhilipBrown, Robert MBrown, Stephen J.Callahan, Carolyn M.Chatterjee, D.Chatterjee, DebabrotoChen, Andrew HChen, Sheng-SyanCho, Dong HwanChristensen, Theodore E. Clark, John M Conover, J.Corredor, PilarCummins, J DavidCurtis, Jeffrey D'Arcy, JohnDavenport, T. H.De Long, D. W.Dehning, BruceDekimpe, Marnik GDixon, Bruce LDombrow, JonathanDos Santos, Brian L Dow, Kevin EDreiling, AlexanderDyckman, ThomasFama, Eugene F.Fama, Eugene F. et al. Farag, N.I.Farrell, Kathleen A Fich, E.M.Fich, Eliezer MFilson, DarrenFisher, LawrenceGallivan, Michael J. Garg, Ashish Gatian, Amy WGaver, Kenneth M.Geyskens, IngeGiaccotto, CarmeloGielens, KatrijnGLEN A. LARSEN, JR.Govekar, Michele Grover, VarunGurbaxani, VijayHalper, HilaryHayes, David C.Hicks, James O JrHilliard, Jimmy E Ho, Kim WaiHogan, StephenHolten, Roland Hovav, AnatHunter, Starling DavidHunton, James E.Ibrahim, Muhammad Faishal Im, Kun Shin Imai, A.Jensen, Michael C.Kamssu, Aurore J.Karake, Zeinab AKarels, Gordon VKashefi, JavadKendall, Julie E.Kendall, Kenneth E.Kendall, Walter R Khanna, ArunKim, Dongnyoung Kim, J.Konsynski, Benn RKraemer, KennethKrishnan, Gopal VKrishnan, M.S.Kritzman, Mark PLarsen, *Glen A. jr.Larsen, Glen A. jr.Lee, Cheng-Few Lee, Ho Geun Lee, PeggyLee, Seong ChulLewis, Christopher MLoh, Amanah Husain Loh, L.MacKinlay, A. CraigMarcus, AlfredMauer, David CMcClatchey, Christine AMcDonald, James EMcKee, Gilbert JMcKenzie, Andrew MMcWilliams, AbagailMelville, NigelMonfort, Kenneth W Oh, W. Oh, Wonseok Ong, Seow Eng Pacini, C.Park, Namgyoo K Peak, D. Peffers, KenPeterson, Pamela P.Pettengill, Glenn NPhilbrick, DonnaRaganathan, C.Ramanan, RamachandranReck, Jacqueline L.Reithel, Brian J.RESNICK, BRUCE G.Ribbert, MichaelRichardson, Vernon JRichardson, Vernon J.Ricks, William E.Rodriguez, Mauricio Roll, Richard Roztocki, N. Ruggles, R. Samarah, I.Sambamurthy, V.Santamaria, RafaelSavickas, RobertSfiridis, James M.Shrestha, Keshab Sibley, MikeSiegel, DonaldSiems, Thomas F Sirmans, C.F.Smith Bamber, Linda Sriram, Ram S Stephan, JensSubramani, ManiThomsen, Michael RVenkatraman, N. Walden, EricWarner, Jerold B.Wells, William H Windsor, J.Ziegelmayer, Jennifer L.Zmud, Robert WZmud, Robert W._Chen, Sheng-Syan  - Academy of Management Journal(%Accounting, Organizations and Society$ Briefings in Real Estate Finance California Management Review Economic & Financial Review0-Electronic Commerce Research and Applications Financial Analysts Journal0*Information Management & Computer Security,(Information Resources Management Journal0,Information Systems and eBusiness Management Information Systems Frontiers Information Systems Research International Economic Review0,International Journal of Electronic Commerce4/International Journal of Information ManagementD@JITTA : Journal of Information Technology Theory and Application$Journal of Accounting Research($Journal of Applied Business Research Journal of Asset Management("Journal of Business and Management Journal of Ecommerce Research$Journal of Economic Literature$!Journal of Economics and Business$Journal of Financial Economics$Journal of Information Systems<8Journal of Information Technology Cases and Applications$Journal of Insurance Regulation,)Journal of Management Information SystemsJournal of Marketing(%Journal of Money, Credit, and Banking$Journal of Risk and Uncertainty$ Logistics Information ManagementManagement ScienceManagerial Finance MIS Quarterly Multinational Business Review0+Quarterly Journal of Business and Economics0-Review of Quantitative Finance and Accounting($Risk Management and Insurance ReviewSloan Management Review Strategic Management Journal TechnovationThe Journal of Business$!The Journal of Financial Research$The Journal of Futures Markets    @ 2)>/ 0<6 $12: '58 (!%73*-4;9.,?=&'ce on self-reported company data has resulted in widely varying estimates of limited credibility. Employing an event study methodology, this study offers an alternative approach and more rigorous evaluation of breaches in IT security. This attempt has revealed several new perspectives concerning the market reaction to IT sec  51121 Software Publishers$!52313 Commodity Contracts Dealing$accounting information systems.Accounting theory AnalysisBanking industryBiasBusiness conditionsBusiness growthBusiness ownership Business to business commerceCapital investmentsCapital markets Cash flow Catastrophes Celebrities CHIEF information officersCommodity futuresComparative analysisComparative studies CompetitionCompetitive advantageComputer securityConsumer goodsCorporate financeCorporate imageCorrelation analysisCosts Cruise lines CurrenciesData integrityDecision makingDefense industryDenial of service attacksDistribution channels e-BusinessEarnings trendsEconomic conditionsEconomic modelsEconomic theory EffectsElectronic commerce("enterprise resource planning (ERP)Estimating techniquesEvent driven simulation Event studyEvent study methodologyExcess profitsExpected returnsFinancial analysisFinancial managementFinancial performanceFinancial servicesForeign exchange ratesGolfHeteroskedasticity HypothesesImpact analysisIndustrywide conditions$ INFORMATION resources managementInformation systemsInformation technology InnovationsInsurance policies InternetInternet economy InvestmentInvestment policy Jackknife Layoffs Liquidity LossesManagement decisions$management information systems Managers Manycompanies ManycountriesManyindustriesMarket strategy Market value MarketingMathematical analysisMathematical models Methods ModelsMultivariate analysisNAICS/Industry Codes Name changesNet present valueNetwork securityOperations researchOrganization theoryOrganizational behaviorOrganizational learningPerformance evaluationPortfolio investmentsPortfolio managementPortfolio performancePresidential electionsPress releases ProblemsProfessional sportsPublic relationsRates of returnReal estate developmentsRegression analysis Research(#Research & development expendituresReturn on investment ReturnsRisk assessment SecuritiesSecurities analysisSecurities marketsSecurities trading volumeSecurity portfoliosShareholders equityShareholders wealthShips Simulation Social conditions & trendsSocial responsibility SpreadStatistical analysisStatistical methodsStochastic modelsStockStock exchanges Stock pricesSTOCK splitting StocksSTOCKS -- PricesStrategic managementStrategic planning Studies SuccessTechnological planning Terrorism Traffic Validity Valuation VolatilityWar Web sites!(81Kendall, Julie E. Kendall, Kenneth E. Adam, Nabil 1994.(Research in MIS: the Rutgers perspective6/International Journal of Information Management{143g223-226d 1994/6Research Notes: Research in MIS at School of Business-Camden, Rutgers University and Graduate School of Management, Rutgers Universityf`http://www.sciencedirect.com/science/article/B6VB4-45P170K-32/2/290dcb21865d45a519955e0d6242a1b4 Arun Khanna 1998,&The Titanic: The untold economic story Financial Analysts Journal54516 Sep/Oct 19980015198X4.Losses Studies Cruise lines Ships Stock pricesNo other ship in history has attracted so much attention, stirred up such powerful emotion, or accumulated so many stories as the Titanic (Butler 1998). This article focuses on a story left untold - the story of the economic impact of the ship's sinking on the Titanic's parent firm, the International Mercantile Marine Company. The results of an event study carried out to examine the stock-price reaction of the IMM around the time of the sinking of the Titanic are presented. The estimated impact of the sinking of the Titanic (in terms of market capitalization) are compared with the losses suffered by IMM (net of insurance). Evidence is provided on the efficiency of capital markets in the early part of the 20th century.lKritzman, Mark P 1994About event studiesb Financial Analysts Journal50617 Nov/Dec 19940015198XLFSecurities markets Securities analysis Rates of return Economic modelsEvent studies measure the relationship between an event that affects securities and the return of those securities. The following steps describe one of several approaches for conducting an event study of a firm-specific event: 1. Define the event and identify the timing of its occurrence. 2. Arrange the security performance data relative to the timing of the event. 3. Separate the security-specific component of return from the security's total return during the pre-event measurement period. 4. Isolate the security-specific return during the event and post-event periods. 5. Aggregate the security-specific returns and standard deviations across the sample of securities on the event day and the post-event days. 6. Test the hypothesis that the security-specific returns on the event day and the post-event days differ significantly from zero. Issues in measuring events, measuring return, and evaluating the results are discussed. ^>8Sheng-Syan Chen Kim Wai Ho Cheng-Few Lee Keshab Shrestha 2004VPNonlinear Models in Corporate Finance Research: Review, Critique, and Extensions4-Review of Quantitative Finance and Accounting222 141Mar 20040924865X4-Studies Mathematical models Corporate financeaF@Since the work of Morck, Shleifer and Vishny (1988), nonlinear model specification has gained more attention in corporate finance research. In this paper, we provide a detailed review of the previous studies that have examined nonlinear relations in corporate finance. We review the theory and evidence in these studies and discuss the advantages and disadvantages of the various methodologies used to detect nonlinearity. We also suggest two possible methodological extensions, which we apply in the empirical analysis of R&D investment and firm value. [PUBLICATION ABSTRACT]*$examples of event studies in Finance*#J David Cummins Christopher M Lewis  2003Catastrophic events, parameter uncertainty and the breakdown of implicit long-term contracting: The case of terrorism insurance&Journal of Risk and Uncertainty262 153 Mar-May 200308955646^WStudies Hypotheses Social conditions & trends Terrorism Insurance policies CatastrophesTThis paper examines the reaction of the stock prices of U.S. property-casualty insurers to the World Trade Center (WTC) terrorist attack of September 11, 2001. Theories of insurance market equilibrium and theories of long-term contracting predict that large loss events which deplete capital and increase parameter uncertainty will affect weakly capitalized insurers more significantly than stronger firms. The empirical results are consistent with this prediction. Insurance stock prices generally declined following the WTC attack. However, the stock prices of insurers with strong financial ratings rebounded after the first post-event week, while those of weaker insurers did not, consistent with the flight-to-quality hypothesis.6/Bruce Dehning Vernon J Richardson Robert W Zmudu 2003b[The value relevance of announcements of transformational information technology investmentsn MIS Quarterlya274 637Dec 200302767783PJStudies Information systems Investment Securities markets Public relationsIn this paper, we examine the influence of IT strategic role to extend the findings of Im et al. (2001), Chatterjee et al. (2002) and Dos Santos et al. (1993). Specifically, we demonstrate that IT strategic role can explain how IT investments in each of the IT strategic roles might affect the firm's competitive position and ultimately firm value. We find positive, abnormal returns to announcements of IT investments by firms making transformative IT investments, and with membership in industries with transform IT strategic roles. The results of previous research are not found to be significant when IT strategic role is included as an explanatory variable. These results provide support for the value of capturing the IT strategic role of a firm's IT-related competitive maneuvering in studies striving to understand the conditions under which IT investments are likely to produce out-of-the-ordinary, positive returns. [PUBLICATION ABSTRACT]'J$  Darren Filson 2004jdThe Impact of E-Commerce Strategies on Firm Value: Lessons from Amazon.com and Its Early CompetitorsThe Journal of Business772 S135Apr 200400219398LEElectronic commerce Manycompanies Market strategy Studies CompetitionaWhich strategies generate value in e-commerce environments? In a stop toward answering this question, this article estimates the impacts of several competitive strategies on the values of the well-known Internet retailer Amazon.com and three of its early competitors, BarnesandNoble.com, CDNOW, and N2K, from their IPO dates until exit or the end of 2001. The strategies analyzed include alliance formation, offline expansion, pricing, product line expansion, and service improvement. The results provide insight into the usefulness of various ways of competing online and could be applied in other settings where firms enter new environments about which they have little information. [PUBLICATION ABSTRACT].(Ashish Garg Jeffrey Curtis Hilary Halper 2003>8Quantifying the financial impact of IT security breaches0*Information Management & Computer Security11 2/37409685227piStudies Network security Internet Information technology Impact analysis Costs Investment Decision making Internet security is a pervasive concern for all companies. However, developing the business case to support investments in IT security has been particularly challenging because of difficulties in precisely quantifying the economic impact of a breach. Previous studies have attempted to quantify the magnitude of losses resulting from a breach in IT security, but reliance on self-reported company data has resulted in widely varying estimates of limited credibility. Employing an event study methodology, this study offers an alternative approach and more rigorous evaluation of breaches in IT security. This attempt has revealed several new perspectives concerning the market reaction to IT security breaches. A final component of the study is the extension of the analysis to incorporate eSecurity vendors and a fuller exploration of market reactions before and after the denial of service attacks of February 2000. The key takeaway for corporate IT decision makers is that IT security breaches are extremely costly, and that the stock market has already factored in some level of optimal IT security investment by companies. [PUBLICATION ABSTRACT]T4.Inge Geyskens Katrijn Gielens Marnik G Dekimpe 200282The market valuation of Internet channel additionsJournal of Marketing662e 102\Apr 200200222429B;Studies Statistical analysis Internet Distribution channelsoThe emergence of the Internet has pushed many established companies to explore this radically new distribution channel. Like all market discontinuities, the Internet creates opportunities as well as threats - it can be performance-enhancing as readily as it can be performance-destroying. Making use of event-study methodology, the authors assess the net impact of adding an Internet channel on a firm's stock market return, a measure of the change in expected future cash flows. The authors find that, on average, Internet channel investments are positive net-present-value investments. The results indicate that powerful firms with a few direct channels are expected to achieve greater gains in financial performance than are less powerful firms with a broader direct channel offering.,%Giaccotto, Carmelo Sfiridis, James M.h 1996HAHypothesis testing in event studies: The case of variance changesR(!Journal of Economics and Business1484{349-3701996/10<5Jackknife Heteroskedasticity Event study methodologyEvent study methods to test the effects of financial events on asset retums implicitly assume a stationary variance. Arbitrage theory [Ross (1989)], however, suggests that the variance of returns should change with the flow of information to the market. Empirical evidence confirms this theory--especially as it applies to financial events. In this paper, we develop a new event study test, based on the jackknife methodology, which is robust to changes in information flow during a financial event. We also consider the rank test of Corrado (1989), the sign test of Corrado and Zivney (1992), the generalized sign test of Cowan (1992), the crosssectional test of Boehmer et al. (1991) and, of course, the standard OLS test. We have constructed a number of experiments to compare the performance of these six tests under four types of variance changes. Although no uniformly most powerful test emerged for all circumstances, our results suggest that if a researcher knows the exact day of the event, then the generalized sign test of Cowan should be applied. However, in most circumstances one must use a multiple-day window to capture the true event day; in this case, we recommend the jackknife test.another model for E(R)f_http://www.sciencedirect.com/science/article/B6V7T-3VV44CY-3/2/f7f16cc07d83437e95a4ee7c972e6c49<6 L0\/\>)*#Raquel Benbunan-Fich Eliezer M Fich 200482Effects of Web Traffic Announcements on Firm Value2,International Journal of Electronic Commerce8r4 161a Summer 200410864415available at GSU LibraryF?Web sites Valuation Press releases Traffic Statistical analysisJCData from independent rating firms on traffic to commercial Web sites are routinely used in financial valuation models and in determining advertising rates. These metrics are not always reliable because third-party estimates of Web traffic are vulnerable to technical and methodological weaknesses. Nonetheless, many companies issue press releases proclaiming their achievement of Web traffic milestones. In this article, standard event-study methodology is used to examine how Web traffic announcements affected firm value in the period from 1996 until 2001. The findings indicate that announcements increased firm value only in 1996-1999, and that the increases were indeed due to the announcements rather than the Internet Bubble. The announcing firms, regardless of business model, trading age, financial performance, and other characteristics, experienced value increases of about 5 percent around the time of the press release. This evidence documents the extent to which the market reacted to Web traffic indicators in the late 1990s despite their shortcomings. [PUBLICATION ABSTRACT]$Benbunan-Fich, R. Fich, E.M.i 2004.'Firm value effects of web site redesign $Journal of Ecommerce Researchm (forthcoming)60Bromiley, Philip Govekar, Michele Marcus, Alfred 1988HAOn Using Event-Study Methodology in Strategic Management Research Technovation8 1-32501664972zsStudies Strategic planning Stock prices Shareholders equity Research Portfolio management Cash flow Capital marketsaMany scholars have recommended the application of finance theory and stock price data to strategic management research and practice. The applications of finance theory offer better measures of firm performance than accounting-based measures. In event study methodology, researchers examine changes in a company's stock price around the date of an event to estimate the impact of the event on the stock market's expectation of the future economic performance of the firm. There are several issues that are particularly important for the appropriate use of stock market data for strategy research. One issue is that event study methodology cannot be used well to evaluate incremental change. It also is not appropriate for evaluating the impact of a particular event on a number of firms.*#Brown, Stephen J. Warner, Jerold B.O 1985:4Using Daily Stock Returns: The Case of Event Studies$Journal of Financial Economics1413rMar 19850304405XVOStudies Stock Statistical analysis Returns Portfolio performance Excess profitsg>7An examination is made of the properties of daily stock returns and the ways in which the particular characteristics of these data affect event study methodologies for assessing the share price impact of firm-specific events. Two hundred fifty samples of 50 securities are assembled. The statistical properties of both observed daily stock returns and daily excess returns are studied. Standard procedures are typically well-specified, even when no attention is paid to special daily data characteristics. However, an advantage may sometimes be gained by recognizing autocorrelation in daily excess returns and changes in their variance conditional on an event. Further, tests which do not consider cross-sectional dependence can be well-specified and have greater power than tests which consider potential dependence.6/Brown, Robert M Gatian, Amy W Hicks, James O Jrr 1995>7Strategic information systems and financial performance0)Journal of Management Information Systemse114f 215 Spring 199507421222^XSuccess Studies Information systems Earnings trends Correlation analysis Business growthInvestment in strategic information systems (SIS) is advocated by numerous authors as an important way for firms to seek competitive advantage. Yet, there is still little empirical evidence that implementation of SIS results in long-term competitive advantages. This is primarily due to the difficulty of isolating economic benefits attributable to SIS implementation. A total of 35 sample firms identified in the media for successful employment of SIS are analyzed for evidence of long-term financial success. This analysis is conducted over a 13-year period, centered around the year in which firms were identified for employment of SIS to either support growth, control costs, form alliances, differentiate products, or provide innovation of products/processes. Results show that the stock market reacted favorably to announcements that firms were using SIS, and in subsequent years, those firms tended to be more productive and more profitable than their industries and than firms in their respective industries.sB;Chatterjee, Debabroto Richardson, Vernon J. Zmud, Robert W. 2001^XExamining the shareholder wealth effects of announcements of newly created CIO positions MIS Quarterlyt251m43 March 20014386664cISSN: 0276-7783B;INFORMATION resources management CHIEF information officerstnWhile information technology (IT) has been transforming the business landscape for a long time now, it is only recently that empirical evidence demonstrating the positive impact of IT on firm performance has begun to accumulate. The strategic importance of a firm's IT capabilities is prompting an increasing number of companies to appoint chief information officers (ClOs) to effectively manage these assets. Such moves are reflective of changes in top management thinking and policy regarding the role of IT and firms' approaches to IT governance. This paper uses the event study methodology to examine market reactions to announcements of new ClO positions. Findings strongly support the notion that, for firms competing in industries undergoing IT-driven transformation, announcements of newly created CIO positions do indeed provoke positive reactions from the marketplace.0)Chatterjee, D. Pacini, C. Sambamurthy, V. 2002ngThe shareholder-wealth and trading-volume effects of information -technology infrastructure investments 0)Journal of Management Information Systems\192u 7-42"Andrew H Chen Thomas F Siems 2001<5B2B eMarketplace announcements and shareholder wealth"Economic & Financial Review12First Quarter 200115263940HBStudies Business to business commerce Stock prices Rates of returnThis paper examines the potential impact of B2B e-commerce initiatives on the New Economy paradigm using the efficient markets hypothesis. B2B e-commerce announcements should immediately raise stock prices if investors believe a firm's value will be increased by higher net future cash flows resulting from higher productivity, lower costs, or higher revenues. This paper empirically investigates B2B eMarketplace announcements from the financial market's perspective. Shareholders are found to view B2B eMarketplace announcements favorably. Significant positive average abnormal returns associated with both vertical and horizontal eMarketplace announcements are found.& dD>Smith Bamber, Linda Christensen, Theodore E. Gaver, Kenneth M. 2000xqDo we really 'know' what we think we know? A case study of seminal research and its subsequent overgeneralization,%Accounting, Organizations and Society252103-129n 2000/2 We show that the community of accounting researchers has not fully appreciated the sensitivity of research conclu- sions to (necessarily) subjective research design choices, and that this failure has led to the subsequent over- generalization of early evidence. Our analysis is based on a case study that examines the eects of two basic research design choices, and subsequent researchers' appreciation of the impact of those choices. To enhance our study's accessibility to a broad cross-section of the accounting research community, our case study focuses on an article that is covered in most accounting doctoral programs D the recipient of the second American Accounting Association ``Seminal Contribution to Accounting Literature Award'' D Beaver's 1968 article on the information content of annual earnings announcements [Beaver, W. (1968). The information content of annual earnings announcements. Empirical research in accounting; Selected studies, 1968. Supplement to Journal of Accounting Research, 6, 67}92.] Our analysis reveals that the research design choices in Beaver's study signiRcantly aected the results. Beaver clearly explained these choices, and was careful in drawing inferences. Nevertheless, subsequent researchers interpreted Bea- ver's evidence too broadly. Our new empirical evidence suggests that the information content inference is much more fragile than is generally suspected. We also present citation analyses showing that, consistent with the Kuhnian view that adherents of a paradigm tend to ignore (later) anomalous evidence, subsequent researchers largely overlooked post-Beaver evidence that was inconsistent with the paradigm's interpretation of Beaver's results. The paper concludes with a brief consideration of how cognitive biases of individuals, combined with biases inherent in the review process and the academy in general, foster an environment where the placement of the Rrst research bricks aect the whole wall. While the case study focuses on an archival empirical Rnancial accounting study, consideration of the eects of subjective research design choices and the documented deRciencies in the interpretation of research are relevant to empirical accounting researchers in general and to critical theorists, as well. While accounting scholars `think we understand' the impact of research design choices, the evidence presented here suggests that we have collectively failed to apply this understanding in practice. Such failure delays the acquisition of knowledge. This study provides a salient demonstration indicating that we must constantly remain on guard to recog- nize the subjective nature of research design choices, to consider the likely eects of those choices, and to be cautious in drawing generalizations.f_http://www.sciencedirect.com/science/article/B6VCK-3YF9W6K-1/2/c22e92954b8bd35a66c8c0df79a437026 Mani Subramani Eric Walden 2001JCThe impact of e-commerce announcements on the market value of firmsr"Information Systems Research122O 135Jun 200110477047piStudies Electronic commerce Business to business commerce Market value Consumer goods Shareholders wealthrThis paper explores the following questions: 1. What are the returns to shareholders in firms engaging in e-commerce? 2. How do the returns to conventional, brick and mortar firms from e-commerce initiatives compare with returns to the new breed of net firms? 3. How do returns from business-to-business (B2B) e-commerce compare with returns from business-to-consumer (B2C) e-commerce? 4. How do the returns to e-commerce initiatives involving digital goods compare to initiatives involving tangible goods? These issues are examined using event study methodology and assess the cumulative abnormal returns to shareholders (CAR) for 251 e-commerce initiatives announced by firms between October and December 1998. The results suggest that e-commerce initiatives do indeed lead to significant positive CARs for firms' shareholders. While the CARs for conventional firms are not significantly different from those for net firms, the CARs for B2C announcements are higher than those for B2B announcements. This paper presents the first empirical test of the dotcom effect, validating popular anticipations of significant future benefits to firms entering into e-commerce arrangements.William H Wells 2004*#A Beginner's Guide To Event Studies&Journal of Insurance Regulation 224461 Summer 2004T0736248X4;(-N*81Andrew M McKenzie Michael R Thomsen Bruce L Dixonm 2004VOThe Performance of event study approaches using daily commodity futures returnss$The Journal of Futures Markets246 533Jun 200402707314NHStudies Commodity futures Rates of return Simulation Regression analysisPISimulations are conducted to assess the inferential accuracy of statistical event study approaches using daily futures returns. Methods examined include constant mean return models and several regression models - OLS, GARCH(1,1), and a GARCH(1,1) model having an error term with a Student's t distribution. The simulations address four of the most commonly analyzed agricultural futures commodities - corn, soybeans, live cattle, and hogs. In terms of the size of the test statistics, constant mean return models with short normal periods perform poorly, leading to unacceptably high rejection rates of the null hypothesis. Test statistics from constant mean return models with longer normal periods, OLS, and GARCH specifications provide rejection rates largely consistent with those of a unit normal distribution. Test statistics from all models are powerful enough to detect abnormal performance levels below those that would trigger limit locks. At small levels of abnormal performance the GARCH(1,1) model with a t distribution was consistently the most powerful model. [PUBLICATION ABSTRACT]t"statistical models for E(R)L& Abagail McWilliams Donald Siegel 1997LFEvent studies in management research: Theoretical and empirical issues$Academy of Management Journal{403i 626}Jun 199700014273|uStudies Statistical methods Validity Problems Economic models Stock prices Social responsibility Management decisionslA study examined the use of event studies in management research and found that there was inadequate attention paid to theoretical and research design issues. This lack of attention may lead to false information regarding the significance of the events and the validity of the theories being tested. To illustrate the extent of this problem, the study attempted to replicate 3 recent studies. To guide authors and reviewers, procedures for appropriate use of the event study method are presented.i4.Nigel Melville Kenneth Kraemer Vijay Gurbaxani 2004nhReview: Information Technology and Organizational performance: an integrative model of IT Business Value MIS Quarterly282 283Jun 200402767783ZSStudies Information technology Organizational behavior Models Competitive advantagenDespite the importance to researchers, managers, and policy makers of how information technology (IT) contributes to organizational performance, there is uncertainty and debate about what we know and don't know. A review of the literature reveals that studies examining the association between information technology and organizational performance are divergent in how they conceptualize key constructs and their interrelationships. We develop a model of IT business value based on the resource-based view of the firm that integrates the various strands of research into a single framework. We apply the integrative model to synthesize what is known about IT business value and guide future research by developing propositions and suggesting a research agenda. A principal finding is that IT is valuable, but the extent and dimensions are dependent upon internal and external factors, including complementary organizational resources of the firm and its trading partners, as well as the competitive and macro environment. Our analysis provides a blueprint to guide future research and facilitate knowledge accumulation and creation concerning the organizational performance impacts of information technology. [PUBLICATION ABSTRACT]TOh, W. Kim, J. 2001^WThe effects of firm characteristics on investor reaction to IT investment announcementsVPProceedings of the Twenty Second International Conference on Information Systems  New Orleans;$Wonseok Oh Michael J. Gallivan 2004b[An Empirical Assessment of Transaction Risks of IT Outsourcing Arrangements: An Event Study\PJProceedings of the 37th Hawaii International Conference on System Sciences Big Island, Hawaii January 2004\VOur study uses stock market reactions to assess various risks associated with IT outsourcing. Because much of the value and cost of IT outsourcing is intangible, hidden, and long-term oriented, most prior studies have articulated IT outsourcing risks conceptually and paid little attention to an empirical validation of such risks. We employ an event study methodology to assess how investors perceive and evaluate the risks related to IT outsourcing. More precisely, we empirically test the extent to which sources of IT outsourcing transaction risk (including asset-specificity, resource dependency, technological discontinuity, and performance monitoring) influence investors reactions to IT outsourcing announcements. Our results indicate that investors exhibit two extreme responses: one perceives that benefits from IT outsourcing outweigh the risks associated with it; the other adopts the exact opposite view. Further analyses reveal that asset specificity of the IT resources to be outsourced and the size of the contract are negatively correlated with investors reactions as measured by stocks cumulative abnormal returns (CARs). Contrary to our predictions, contract duration and performance monitoring problems were not significantly associated with the market reaction. We discuss these findings and offer implications for both research and practice.RKhttp://csdl.computer.org/comp/proceedings/hicss/2004/2056/08/205680251c.pdfdNamgyoo K Park 2004D>A guide to using Event Study Methods in multi-country settings"Strategic Management Journal257t 655fJul 200401432095f_Studies Methods Strategic management Manycountries Models Impact analysis Financial performancenWhile the event study method has made significant contributions to strategic management research, most event study research published in management journals has analyzed the financial implications of corporate announcements in a single country. This study discusses solutions to methodological challenges that emerge when applying the event study method to multiple countries. Specifically, this study develops the world market model, illustrating how to simultaneously assess the financial impact of strategic actions in multiple countries. These challenges and solutions are illustrated by an example of a multi-country event study analyzing 241 international alliance announcements of 23 firms in 16 countries. The findings show that the use of the single country market model in a multi-country event study is likely to overestimate changes in firm value, demonstrating the need for this world market model. [PUBLICATION ABSTRACT]:2Z1"$D\60Jonathan Dombrow Mauricio Rodriguez C.F. Sirmans 20004-A Complete Nonparametric Event Study Approach04-Review of Quantitative Finance and Accountinge144i 361Jun 20000924865X`YEvent driven simulation Methods Stocks Performance evaluation Regression analysis StudiesdEvent studies have been used to examine the direction, magnitude, and speed of security price reactions to various phenomenon. Concerns over the lack of normality in stock return distributions motivated the introduction of nonparametric test statistics in the event study literature. A parametric procedure (OLS), however, has been extensively employed in the estimation of parameters for the market model. This paper, in contrast, applies Theil's nonparametric regression in the estimation of abnormal returns; an approach which is distribution free and provides a complete nonparametric approach for the detection of abnormal performance. Simulation results indicate Theil's estimation procedure offers a slight improvement in power in the detection of abnormal performance over the traditionally employed methodology. The results suggest employing Theil's nonparametric estimation procedure combined with the rank statistic. This complete nonparametric combination offers similar power with fewer underlying assumptions. [PUBLICATION ABSTRACT]6/Dos Santos, Brian L Peffers, Ken Mauer, David Ce 1993d]The impact of information technology investment announcements on the market value of the firme"Information Systems Research411Mar 199310477047Stock prices Statistical analysis Press releases Net present value Market value Manyindustries Innovations Information systems Effects Capital investmentsDetermining whether investments in information technology (IT) have an impact on firm performance has been and continues to be a major problem for information systems researchers and practitioners. Financial theory suggests that managers should make investment decisions that maximize the value of the firm. Using event-study methodology, empirical evidence is provided on the effect of announcements of IT investments on the market value of the firm for a sample of 97 IT investments from the finance and manufacturing industries from 1981 to 1988. Over the announcement period, no excess returns are found for either the full sample or for any one of the industry subsamples. However, cross-sectional analysis reveals that the market reacts differently to announcements of innovative IT investments than to followup, or noninnovative investments in IT. Innovative IT investments increase firm value, while noninnovative investments do not. Furthermore, the market's reaction to announcements of innovative and noninnovative IT investments is independent of industry classification. These results indicate that, on average, IT investments are zero net present value investments.F@Dyckman, Thomas Philbrick, Donna Stephan, Jens Ricks, William E. 1984leA Comparison of Event Study Methodologies Using Daily Stock Returns: A Simulation Approach/Discussionr$Journal of Accounting Research22100218456ztStudies Statistical analysis Simulation Security portfolios Returns Research Portfolio investments Accounting theoryA simulation approach is used to examine the interaction of portfolio size, event-date uncertainty, and the magnitude of abnormal performance over ranges of all 3 variables simultaneously to see if these factors have a major effect on the researcher's ability to detect abnormal performance. The analysis is conducted using a mean-adjusted returns model, a market model, and a market-adjusted return model. The study period is May 1, 1974-August 31, 1979, and a hypothetical event date is randomly chosen for each firm listed on Center for Research in Security Prices daily return files, with a final sample of 2,069 firms. The results indicate that the abilities of the 3 models to correctly detect abnormal performance are similar, with a slight preference for the market model. When the day of the event is uncertain, it is better to accumulate the residuals using either a one-day or multiday market model. Furthermore, use of the Scholes-Williams and Dimson methods of estimating risk to lessen the effects of the nonsynchronous trading problem does not improve detection ability. Ricks addresses concerns raised by the analysis concerning the use of the simulation approach.HBFama, Eugene F. Fisher, Lawrence Jensen, Michael C. Roll, Richard 196981The Adjustment of Stock Prices to New Information\$International Economic Reviewf101b 1-21 1969/0& STOCKS -- Prices STOCK splittingFocuses on the adjustment of stock prices to the information in a stock split. Impact of market concerns on stock splits; Factors influencing the increase in dividends; Importance of adjusting security returns for general market conditions.hahttp://www.sciencedirect.com/science/article/B6WS7-47C94B3-20X/2/662b26cf9ce17fd28cce8b7864d0ba9a"Farag, N.I. Krishnan, M.S.o 2003ZTThe market value of IT outsourcing investment announcements: An event-study analysisHAProceedings of the 9th Americas Conference on Information Systems  Tampa, FL 1623-1629RKKathleen A Farrell Gordon V Karels Kenneth W Monfort Christine A McClatchey 2000JDCelebrity performance and endorsement value: The case of Tiger WoodsManagerial Finance267103074358PJCelebrities Professional sports Studies Regression analysis Marketing GolfAn interesting issue little explored in the celebrity endorsement literature is whether or not the activities of a celebrity endorser affect company performance. We examine the impact of Tiger Woods' tournament performance on the endorsing firm's value subsequent to the contract signing. We do not find a relationship between Tiger's tournament placement and the excess returns of Fortune Brands (parent of Titleist). This is likely due to Titleist being a very small contributor to the total market value of Fortune Brands. We also fail to find a significant relationship for American Express suggesting the market does not view a golfer endorsing financial services as credible. We do, however, find a positive and significant impact of Tiger's performance on Nike's excess returns suggesting that the market values the additional publicity that Nike receives when Tiger is in contention to win. [PUBLICATION ABSTRACT]3R7%< ,%Larsen, Glen A. jr. Resnick, Bruce G.n 1999voA Performance Comparison Between Cross-Sectional Stochastic Dominance and Traditional Event Study Methodologiesf4-Review of Quantitative Finance and Accounting122 103Mar 19990924865XXQStochastic models Studies Comparative analysis Rates of return Securities marketssxqIn this study, the performance of cross-sectional stochastic dominance (SD), first proposed by Falk and Levy (FL) (1989), is compared with three traditional event study methodologies: the Mean Adjusted model, the Market Adjusted model, and the Market and Risk Adjusted Returns model. The comparison technique we use is a simulations approach similar to that of Brown and Warner (BW) (1980). BW show that the Mean Adjusted and Market Adjusted Returns models perform as well as the more sophisticated Market and Risk Adjusted Returns model. FL, however, provide a very compelling argument against the three traditional event study methodologies. The problem, they note, is not the theoretical need for risk adjustment; it is the definition and measurement of risk. The present research finds that SD analysis without the bootstrap method for statistical testing is not very useful at any level of abnormal return. However, when the bootstrap method of statistical testing is employed, SD is found to perform as well as, and sometimes better than, the three traditional models in detecting simulated abnormal performance at all test levels.s"statistical models for E(R) Peggy Lee 2001d]What's in a name.com? The effects of '.com' name changes on stock prices and trading activityg"Strategic Management Journal228Y 793Aug 200101432095TNStudies Name changes Stock prices Organization theory Internet Corporate image This paper uses a market signaling perspective to examine investor reactions to firm announcements of name changes to include ".com." Firms that change their name as a purely cosmetic technique are contrasted to those that employ other strategic investments. Results show that announcements of ".com" name changes are associated with significant increases in stock prices and trading activity. Furthermore, the magnitude of investor reactions is significantly larger when name changes are accompanied by other strategies.2+Lee, Ho Geun Cho, Dong Hwan Lee, Seong Chul 20024.Impact of e-Business initiatives on firm value4-Electronic Commerce Research and Applicationsg1e1  41-56 2002/0RLe-Business Electronic commerce Event study Market value Internet economyF?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.f_http://www.sciencedirect.com/science/article/B6X4K-462681W-2/2/5e207944475571e6ca306fef914c1d58Loh, L. Venkatraman, N. 1992NGStock market reaction to IT outsourcing: An event study (Working Paper)r HASloan School of Management, Massachusetts Institute of TechnologyeA. Craig MacKinlay 1997,&Event Studies in Economics and Finance$Journal of Economic Literature351 13-39 March 1997no abstract provided81general description + statistical models for E(R)`Yhttp://links.jstor.org/sici?sici=0022-0515%28199703%2935%3A1%3C13%3AESIEAF%3E2.0.CO%3B2-W @ n|P5$8:4Hayes, David C. Hunton, James E. Reck, Jacqueline L. 2000Information systems outsourcing announcements: Investigating the impact on the market value of contract granting and receiving firms$Journal of Information Systems142109-1257:4Hayes, David C. Hunton, James E. Reck, Jacqueline L. 2001:4Market Reactions to ERP Implementation Announcements$Journal of Information Systems1513r Spring 20014626516ISSN: 0888-7985event study management information systems accounting information systems. enterprise resource planning (ERP) NAICS/Industry Codes 52313 Commodity Contracts Dealing 51121 Software PublishersnhThe objective of this research is to examine how the capital market responds when a firm announces that it plans to implement an enterprise resource planning (ERP) system. This is the first study to investigate the extent to which ERP systems are deemed to add market value to business organizations. Study findings indicate an overall positive reaction to initial ERP announcements. Further analyses suggest that the reaction is most positive for small/healthy firms. Finally, the market response to larger ERP vendors, as reflected by PeopleSoft and SAP, is significantly more positive than to smaller ERP vendors. Stephen Hogan 1996D=Covariance analysis as an alternative event-study methodologyManagerial Finance223a5403074358TMStock exchanges Stock prices Investment Financial management Analysis StudiesZSToday the most common way of testing for the presence of abnormal stock market returns is by following the pioneering work of Fama, Fisher, Jensen, and Roll (1969). Their benchmark approach examines whether or not the stochastic behavior of firms' market-conditional returns is significantly affected by some specific event like an earnings announcement, CEO's death, or brokerage house recommendation. Under certain conditions, though, it may also be possible to test for abnormal returns by using analysis of covariance. This approach has been used extensively to test for experimental - and control-group differences in such diverse areas as applied psychology, entrepreneurship, cost accounting, and business ethics. However, covariance analysis does not appear to have been widely used as an event-study methodology in finance-related areas. As an alternative to the benchmark approach, though, it offers sufficient power to accommodate event-related investigations. Moreover, it offers a degree of flexibility, especially in controlling extra-market factors, the benchmark approach may sometimes lack.aAnat Hovav John D'Arcy 2003XQThe impact of Denial-of-Service attack announcements on the market value of firmsn*$Risk Management and Insurance Review6e2597 Fall 200310981616Studies Statistical analysis Denial of service attacks Market value Internet Computer security Risk assessment Data integrity Manycompanies  The increase in security breaches in the last few years and the need to insure information assets has created an intensified interest in information risk within organizations and for insurance companies. Risk assessment is an important component in the establishment of security policies. However, very little is known of the financial impact and the risk associated with security breaches. This article reports the impact of Denial-of-Service (DOS) attack announcements on the market over a period of 4.5 years. The study was conducted using event study methodology. The results show that in general the market does not penalize companies that experience such an attack. However, there is an indication that the market penalizes "Internet-specific" companies more than other companies. Our results indicate that large companies who are not "Internet-specific" might be overreacting to the media hype and may be investing resources to prevent a problem that has marginal impact on their shareholder value. [PUBLICATION ABSTRACT]Starling David Hunter0 2003XQInformation technology, organizational learning, and the market value of the firmnF@JITTA : Journal of Information Technology Theory and Application51115324516d^Studies Capital investments Information technology Regression analysis Organizational learningThis paper compares the mean and variance of cumulative abnormal returns following announcements of two types of information technology (IT) investments: those which entail the exploitation of firm's current capabilities vs. those which involve the exploration of new capabilities. The paper addresses two understudied questions in research on the contribution of IT to firm performance: the contingent nature of those contributions and the impact on risk, as well as on return. A standard event study analysis was performed on a sample of 150 announcements of IT investments made by 59 publicly-traded retailers between the years 1990-1997. Two types of multivariate regression analysis were performed on the event returns: ordinary least squares and multiplicative heteroscedastic regression. The results indicate that, as expected, "exploitative" IT investments have the same mean as, yet lower variance than, abnormal returns associated with "exploratory" IT investments. Both types of IT investments had a significantly negative impact on the market value of the firm. Taken together, these findings suggest that the characteristics of IT investments themselves, as well as the industry and strategic context within which they were made, are important determinants of the market value of the firm.m*$Kun Shin Im Kevin E Dow Varun Grover 2001voResearch report: A reexamination of IT investment and the market value of the firm - An event study methodology "Information Systems Research121 103Mar 200110477047NGStudies Information technology Stock prices Effects Business conditionseEvaluating the effectiveness of information technology (IT) investments has always been an elusive but important goal of IS researchers. This study builds on a prior study that examined changes in the market value of the firm as reflected by the stock price in response to IT investment announcements. Data on stock prices were analyzed for 238 publicly traded companies. In addition to the stock price analysis, reaction of trading volume to the announcements was also examined to identify whether IT investment announcements affect investors' beliefs about IT value. This study provides optimism on the stock market reaction to IT investment announcements as well as further insight into the study of IT impacts on organizational performance.@9Aurore J. Kamssu Brian J. Reithel Jennifer L. Ziegelmayer 2003xqInformation Technology and Financial Performance: The Impact of being an Internet-Dependent Firm on Stock Returns$Information Systems Frontiers53 279Sep 200313873326ngStudies Information technology Financial performance Impact analysis Securities markets Rates of returntThe choice of a particular technology to implement a firm's business strategy may impact the firm's market performance. This study assesses the impact of being an Internet-dependent firm on a firm's stock valuation. The empirical results indicate that in a booming economy, Internet-dependent firms have lower excess returns than non-Internet firms. These high returns can be explained by the fact that in such an economy, Internet stocks trade at relatively higher prices than non-Internet stocks. Therefore, choosing a particular technology to implement business strategy may have a significant impact a firm's stock performance. [PUBLICATION ABSTRACT]=?,Z.9stensen, Theodore E. Gaver, Kenneth M. 2000xqDo we really 'know' what we think we know? A case study of seminal research and its subsequent overgeneralization,%Accounting, Organizations and Society252103-129n 2000/2 We show that the community of accounting researchers has not fully appreciated the sensitivity of research conclu- sions to (necessarily) subjective research design choices, and that this failure (!Peak, D. Windsor, J. Conover, J.e 2002LFRisks and effects of IS/IT outsourcing: A securities market assessment>8Journal of Information Technology Cases and Applications4v1c 6-33Peterson, Pamela P.l 198981Event Studies: A Review Of Issues And Methodology2+Quarterly Journal of Business and Economics28336 Summer 1989s07475535TNStudies Return on investment Research Mathematical analysis Financial analysisIn event studies, the objective is to examine the market's response to a well-defined event through the observation of security prices around the event. A study was conducted to review the present state of knowledge and practice with regard to event study methodology. Guidance is provided for choosing among the several options researchers face during the course of event studies. It is suggested that researchers: 1. determine the event date as precisely as possible, 2. examine alternative first and last periods used in calculating abnormal returns if there is no previous evidence as to the length of time required and positioning relative to the event date, 3. select the estimation period appropriate for the particular event, 4. use a market-adjusting model if event dates are clustered relative to calendar time, and 5. select intervals for the cumulative abnormal return that correspond as closely as possible to the market reaction being evaluated.&Glenn N Pettengill John M Clarkp 2001b[Estimating expected returns in an event study framework: Evidence from the dartboard columne2+Quarterly Journal of Business and Economics40 3/43 Summer 200107475535TNStudies Economic models Estimating techniques Expected returns Bias SecuritiesThis paper examines methodological issues surrounding estimation of abnormal returns in an event study framework. It studies a bias in estimating expected returns when applying the market model to study samples that include momentum securities. Based on this bias, an alternative method for estimating expected return is recommended. Numerous event studies have examined the performance of stocks recommended by investment professionals. This paper argues that these recommendations have a tendency to involve momentum securities. To examine these issues, the paper studies recommendations made in the well-known Wall Street Journal Dartboard contest. It finds that these are indeed momentum securities and that application of the market model provides biased results. Raganathan, C. Samarah, I. 2001RLEnterprise Resource Planning Systems and Firm Value: An Event Study AnalysisNGProceedings of the 22nd International Conference on Information Systems New Orleans, Louisiana157-158;Roztocki, N. Imai, A. 2003f_An exploratory study of the impact of IT investment announcements on companies' values in JapanHAProceedings of the 9th Americas Conference on Information Systemst  Tampa, FL. 1480-1487; August 4-6 ^>8Sheng-Syan Chen Kim Wai Ho Cheng-Few Lee Keshab Shrestha 2004VPNonlinear Models in Corporate Finance Research: Review, Critique, and Extensions4-Review of Quantitative Finance and Accounting222 141Mar 20040924865X4-Studies Mathematical models Corporate financeaF@Since the work of Morck, Shleifer and Vishny (1988), nonlinear model specification has gained more attention in corporate finance research. In this paper, we provide a detailed review of the previous studies that have examined nonlinear relations in corporate finance. We review the theory and evidence in these studies and discuss the advantages and disadvantages of the various methodologies used to detect nonlinearity. We also suggest two possible methodological extensions, which we apply in the empirical analysis of R&D investment and firm value. [PUBLICATION ABSTRACT]*$examples of event studies in Finance*#J David Cummins Christopher M Lewis  2003Catastrophic events, parameter uncertainty and the breakdown of implicit long-term contracting: The case of terrorism insurance&Journal of Risk and Uncertainty262 153 Mar-May 200308955646^WStudies Hypotheses Social conditions & trends Terrorism Insurance policies CatastrophesTThis paper examines the reaction of the stock prices of U.S. property-casualty insurers to the World Trade Center (WTC) terrorist attack of September 11, 2001. Theories of insurance market equilibrium and theories of long-term contracting predict that large loss events which deplete capital and increase parameter uncertainty will affect weakly capitalized insurers more significantly than stronger firms. The empirical results are consistent with this prediction. Insurance stock prices generally declined following the WTC attack. However, the stock prices of insurers with strong financial ratings rebounded after the first post-event week, while those of weaker insurers did not, consistent with the flight-to-quality hypothesis.6/Bruce Dehning Vernon J Richardson Robert W Zmudu 2003b[The value relevance of announcements of transformational information technology investmentsn MIS Quarterlya274 637Dec 200302767783PJStudies Information systems Investment Securities markets Public relationsIn this paper, we examine the influence of IT strategic role to extend the findings of Im et al. (2001), Chatterjee et al. (2002) and Dos Santos et al. (1993). Specifically, we demonstrate that IT strategic role can explain how IT investments in each of the IT strategic roles might affect the firm's competitive position and ultimately firm value. We find positive, abnormal returns to announcements of IT investments by firms making transformative IT investments, and with membership in industries with transform IT strategic roles. The results of previous research are not found to be significant when IT strategic role is included as an explanatory variable. These results provide support for the value of capturing the IT strategic role of a firm's IT-related competitive maneuvering in studies striving to understand the conditions under which IT investments are likely to produce out-of-the-ordinary, positive returns. [PUBLICATION ABSTRACT]