IT Investments Disclosure, Information Quality, and Factors Influencing Managers' Choices

Joung W. Kim; Jee-Hae Lim

IT Investments Disclosure, Information Quality, and Factors Influencing Managers' Choices

Joung W. Kim
, Jee-Hae Lim

Research output: Contribution to journal › Article › peer-review

Abstract

We explored how IT disclosure affects information quality in the market and identified the factors that influence managers’ choices in IT disclosure quality. Adopting a comprehensive view of IT investments disclosure mechanisms, we found that IT disclosure quality was positively associated with information quality. Specifically, our results showed that an increase in quantitative information in IT disclosure could improve the information environment in the market, thereby reducing the perception of information risk among market participants. We also found that managers’ disclosures were less quantitative when the IT investment was more asset-specific in relation to higher agency costs.

Original language	American English
Article number	2-3
Pages (from-to)	114-123
Number of pages	10
Journal	Information & Management
Volume	48
Issue number	2-3
State	Published - Mar 2011

Funding

The authors would like to thank Edgar H. Sibley (editor), the associate editor, and the three anonymous referees for their careful reviews and constructive suggestions. We also thank Elaine Mauldin as well as anonymous reviewers at the 2010 Mid-Information System American Accounting Association, the 2010 Canadian Academic Accounting Association, and the 2010 Annual Meeting at American Accounting Association. We acknowledge financial support provided by the Center for Information Systems Assurance (sponsored by the Canadian Institute of Chartered Accountants), the Information Systems Audit and Control Association, Caseware IDEA Inc., CICA/CAAA , and the University of Waterloo .

Funders
CICA
Canadian Institute of Chartered Accountants
Center for Information Systems Assurance
IDEA Inc.
Canadian Academic Accounting Association
University of Waterloo

ASJC Scopus Subject Areas

Management Information Systems
Information Systems
Information Systems and Management

Keywords

Growth opportunity
IT asset specificity
IT investments
Information quality
Strategic IT role
Voluntary disclosure

Disciplines

Business

Cite this

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IT Investments Disclosure, Information Quality, and Factors Influencing Managers' Choices

Abstract

Funding

ASJC Scopus Subject Areas

Keywords

Disciplines

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