AMCIS - Impact of cloud computing adoption on firm stock price - An empirical research

M. Adam Mahmood
Faruk Arslan
Jagadish Dandu
Godwin J. Udo

Document Type

Conference Proceeding

Publication Date

6-2-2014

Abstract

In this paper, we investigate how cloud computing adoption impacts publicly traded 26 cloud&adopting companies' stocks. In an effort to perform a valid assessment of a firm's cloud adoption initiatives, we also evaluate the stocks of 26 companies, which did not adopt cloud computing and operate in the same industry with similar market capitalization. Our study differs from the previous studies in the area because it uses Fama&French three factor model to d erive the stock abnormal returns for both adopters and non&adopters. Furthermore, given the announced risks of cloud computing in the literature, we analyzed the stock risk between adopters and non&ad opters. Our preliminary analysis implies that businesses adopting cloud computing experience positive cumulative abnormal returns during the time the event was announced. Our research also indicates that both cloud adopting and non&cloud adopting companies suffer from higher stock risk during the announcement but this risk is not statistically significant.

Disciplines

Business | Computer Sciences | Physical Sciences and Mathematics

Indexed in Scopus

no

Open Access

no

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