{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,4,11]],"date-time":"2026-04-11T10:15:27Z","timestamp":1775902527534,"version":"3.50.1"},"reference-count":70,"publisher":"Emerald","issue":"6","license":[{"start":{"date-parts":[[2017,10,9]],"date-time":"2017-10-09T00:00:00Z","timestamp":1507507200000},"content-version":"tdm","delay-in-days":0,"URL":"https:\/\/www.emerald.com\/insight\/site-policies"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["JEIM"],"published-print":{"date-parts":[[2017,10,9]]},"abstract":"<jats:sec><jats:title content-type=\"abstract-subheading\">Purpose<\/jats:title><jats:p>With computer technology fast becoming the engine that drives productivity, IT systems have become more pervasive in the daily operations of many businesses. Large, as well as small, businesses in the USA now rely heavily on IT systems to function effectively and efficiently. However, past studies have shown CEOs do not always understand how reliant their business is on IT systems. To the authors\u2019 knowledge, no research has not yet examined if financial markets understand how IT affects the performance of businesses. The paper aims to discuss these issues.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-subheading\">Design\/methodology\/approach<\/jats:title><jats:p>In this study, the authors utilize the event study method to examine how financial markets interpret weaknesses in businesses IT systems. The authors examine this in the context of the Sarbanes-Oxley Act \u2013 Section 404 requirements and utilize the internal reporting requirement in the annual financial statement filing with the Securities Exchange Commission as a proxy to evaluate how the financial markets interpret IT weaknesses.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-subheading\">Findings<\/jats:title><jats:p>Using an event study, the authors show that the market does not necessarily understand and respond to the effects of IT weaknesses on overall financial performance of firms and thus challenge the efficient market hypothesis theory.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-subheading\">Originality\/value<\/jats:title><jats:p>A second contribution is methodological in nature. IS researchers thus far have been using limited market benchmarks, statistical tests, and event windows in their respective event studies of market performance. This study shows shortcomings of that approach and the necessity of expanding usage of available event analysis tools. The authors show that using more than one market benchmark and statistical test across multiple time frames uncovers the effects that using a single benchmark and test over a single window would have overlooked.<\/jats:p><\/jats:sec>","DOI":"10.1108\/jeim-02-2016-0053","type":"journal-article","created":{"date-parts":[[2017,8,25]],"date-time":"2017-08-25T07:22:29Z","timestamp":1503645749000},"page":"964-986","source":"Crossref","is-referenced-by-count":6,"title":["IT internal control weaknesses and the market value of firms"],"prefix":"10.1108","volume":"30","author":[{"given":"John R.","family":"Kuhn","sequence":"first","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Bonnie","family":"Morris","sequence":"additional","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"140","reference":[{"issue":"2","key":"key2020120511253485800_ref001","doi-asserted-by":"crossref","first-page":"221","DOI":"10.2307\/2672932","article-title":"Is the US stock market myopic?","volume":"38","year":"2000","journal-title":"Journal of Accounting Research"},{"issue":"4","key":"key2020120511253485800_ref002","doi-asserted-by":"crossref","first-page":"1147","DOI":"10.1111\/j.1540-6261.1993.tb04749.x","article-title":"Stock price volatility, ordinary dividends, and other cash flows to shareholders","volume":"48","year":"1993","journal-title":"Journal of Finance"},{"key":"key2020120511253485800_ref003","article-title":"Is there a cost to privacy breaches? 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