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An IT Risk-Return Model to Study IT Governance of Indian Firms

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E-Life: Web-Enabled Convergence of Commerce, Work, and Social Life (WEB 2015)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 258))

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Abstract

In this paper, we measure IT governance using an IT risk-return model. We study impact of market and accounting return of Indian firms’ vis-à-vis their IT investments for the period 2003–2014. We have focused on three sectors (manufacturing, IT, and banking) only due to paucity of data. We note IT investments make significant contribution to overall firm risk and lead to earning stabilization and reduction of firm risk. The impact of IT investment on IT return, measured, is positive and significant. However, IT return reduces, once we incorporate IT risk term in this model, which reflects the risk premium associated with gross IT return.

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Author information

Authors and Affiliations

  1. Indian Institute of Management Lucknow, Lucknow, India

    Manas Tripathi & Arunabha Mukhopadhyay

  2. Indian Institute of Management Calcutta, Calcutta, India

    Indranil Bose

Authors
  1. Manas Tripathi
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  2. Arunabha Mukhopadhyay
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  3. Indranil Bose
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Corresponding author

Correspondence to Arunabha Mukhopadhyay .

Editor information

Editors and Affiliations

  1. Department of Decision and Information Sciences, Oakland University, Rochester, Michigan, USA

    Vijayan Sugumaran

  2. Virginia Commonwealth University, Richmond, Virginia, USA

    Victoria Yoon

  3. Beckman Institute for Advanced Science and Technology, University of Illinois at Urbana–Champaign, Urbana, Illinois, USA

    Michael J. Shaw

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Tripathi, M., Mukhopadhyay, A., Bose, I. (2016). An IT Risk-Return Model to Study IT Governance of Indian Firms. In: Sugumaran, V., Yoon, V., Shaw, M. (eds) E-Life: Web-Enabled Convergence of Commerce, Work, and Social Life. WEB 2015. Lecture Notes in Business Information Processing, vol 258. Springer, Cham. https://doi.org/10.1007/978-3-319-45408-5_21

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