dc.description.abstract | This thesis examines how IT investment announcements affect the stock returns of
firms listed at the Oslo Stock Exchange. An event study approach, using the
Market model, Fama French Three Factor- and Carhart Four Factor-model to
estimate normal returns, is applied. Estimated normal returns are compared to the
actual historical returns in the market. Previous studies1 suggest that one should
expect positive abnormal returns following announcements of IT investments.
This study was not able to find any clear evidence supporting the idea that IT
investment announcements create abnormal returns significantly different from
zero. We did, however, find signs suggesting that small firms do experience some
significant positive market reaction following their announcements. | nb_NO |