ABSTRACT: Can investments in information technology translate into benefits for investors? This study uses Bayesian theory to explore whether the benefits of adopting a technology (that increases the quality of information) extend to the investing community. An added value to firms investing in technology is that such investment may increase the demand for information from outside the firm. As the market demand for this information increases, companies that seek capital in the security markets may have a greater incentive to adopt technologies that increase information quality.
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American Accounting Association
2008
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