Impact of e-Business initiatives on firm value Annotated Bibliography

Impact of e-Business initiatives on firm value - Annotated Bibliography ExampleThe study reveals that the cumulative abnormal return for such initiatives ranges from 3.5% to 4.74% in the first fin days. Another significant finding is that the abnormal returns are higher in the e-business initiatives of business-to-consumer firms than that of business-to-business firms. The explanation for this claim is set up in the firm size effect. It is found that higher abnormal returns are created in small-sized firms. As business-to-business firms are generally bigger than business-to-customer firms, it is claimed that the latter will gain more abnormal returns in the e-business initiatives.Thus, lay an end to the long ambiguity regarding the profitability of e-business initiatives, the study came up with the finding that it is highly beneficial to the firms because it offers future benefits to the firms in the form of increased market values. The reason, fit to the scholars, is that such a ggressive steps are often considered as futuristic by stakeholders and other public. Thus, such firms escape the usual bandwagon effect.Admittedly, there were previous studies which proven that e-business initiatives positively affect the value of firms. However, the present study stands apart for showing the various effects of e-business initiatives based on the nature of the initiative and the nature of the business. The talent of the study lies in the fact that it investigates the issue in two different capital markets namely KSE and KOSDAQ. However, there are some findings which contradict the findings in American market. For example, while the e-business expansion of an established e-business company makes more positive effect than the e-business initiative of a non-internet firm in the U.S, the opposite is true in Korea. Similarly, though the study hypothesized that the abnormal returns are linked to the layer to which the