The Research On Moderation Effect Of Corporate Governance On The Relationship Between IT Investment And Returns

For the research in the relationship between IT investment and returns has been inconclusive. Many scholars have proposed different factors will exist to impact IT investment returns, and emphasized organizational resources complementary to IT will play a key role in IT investment. Corporate governance represents organizational structures at the governance level, which therefore may stand out as a complementary resource for IT investment.The paper selects firms in China Enterprise Informatization500from2004to2008as object, focusing on Chinese manufacturing industry, utilizing5years panel data to analyse the moderation effect on the relationship between IT investment and returns. Based on the theoretical derivation, the paper proposed board independence, CEO duality, state ownership, legal-person ownership will have effect on IT investment returns, and will have different moderation effect in different competitive scenario. After panel data regression analysis, the results show that board independence and legal-person ownership will have a positive moderation effect on IT investment returns, state ownership will have a negative effect on IT investment returns. The results in different competitive scenario show that the moderation effect of board independence and legal-person ownership on IT investment-returns relation is more positive for more competitive industries than for less competitive industries, the moderation effect of state ownership is more negative for more competitive industries than for less competitive industries. Moreover CEO duality originally have no moderation effect on IT investment returns, which will have positive moderation effect in less competitive industries. These conclusions will provide evidence to guide practical IT investment for enterprises.