Please use this identifier to cite or link to this item: http://scholarbank.nus.edu.sg/handle/10635/44836
Title: Corporate governance and strategic resource allocation: The case of information technology investments
Authors: Loh, L. 
Venkatraman, N.
Issue Date: 1993
Source: Loh, L.,Venkatraman, N. (1993). Corporate governance and strategic resource allocation: The case of information technology investments. Accounting, Management and Information Technologies 3 (4) : 213-228. ScholarBank@NUS Repository.
Abstract: We empirically examine a set of relationships between corporate governance and information technology investments. Specifically, we test our relationships with data from a sample of major U.S. corporations using structural equation modeling. We established a negative relationship between information technology investments and two constructs of corporate governance, namely: (a) stock ownership structure (that includes large or insider shareholders); and (b) presence of takeover defenses. These results provide support for the "monitoring hypothesis" and the "managerial entrenchment hypothesis" of risky investments respectively. In addition, we observed a negative relationship between stock ownership structure and takeover defense adoption. Our study contributes to a critical understanding of the determinants of information technology investments viewed within the governance context of a relational exchange between two important corporate constituents: the managers and the shareholders. © 1993.
Source Title: Accounting, Management and Information Technologies
URI: http://scholarbank.nus.edu.sg/handle/10635/44836
ISSN: 09598022
Appears in Collections:Staff Publications

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