IT assets, organization capital and market power: Contributions to business value |
Abstract:
How much IT capital contributes to the economic value of firms is a relevant but complex issue, since thecontribution may come from different sources that are difficult to separate. In this paper, we model the determinantsof the economic value of multi-asset firms with market power when the adjustment costs ofinvesting in IT capital turn into organization capital, increasing the future cash flow of the firm. The resultingvaluation equation, newin the literature, has four simultaneous sources of economic value: (i) purchasecosts of the assets, (ii) adjustment costs, (iii) organization capital, and (iv) rents from market power. Themodel is tested with a unique data base from Spanish banks in a time period when these banks investedheavily in IT capital. We find that 54% of the economic value of the representative bank corresponds tothe purchase cost of material and immaterial assets, including IT capital. The remaining 46% correspondsto the contributions of: adjustment costs (17%), organization capital (7%) and rents from market power |
| Keywords: |
IT capital Business value Organization capital Banks Adjustment costs |
| Author(s): |
Alfredo Martín-Oliver , Vicente Salas-Fumás |
| Source: |
Decision Support Systems 52 (2012) 612–623 |
| Subject: |
فناوری اطلاعات |
| Category: |
مقاله مجله |
| Release Date: |
2012 |
| No of Pages: |
12 |
| Price(Tomans): |
0 |
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بر اساس شرایط و ضوابط ارسال مقاله در سایت مدیر، این مطلب توسط یکی از نویسندگان ارسال گردیده است. در صورت مشاهده هرگونه تخلف، با تکمیل فرم گزارش تخلف حقوق مؤلفین مراتب را جهت پیگیری اطلاع دهید.
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