Impact of e-business initiatives on firm value

Ho Geun Lee, Dong Hwan Cho, Seong Chul Lee

Research output: Contribution to journalArticlepeer-review

15 Citations (Scopus)


A growing number of firms are competitively entering into e-Business because they see the high potential of e-Business growth as an opportunity. The positive expectation of the e-Business market leads most firms to go into e-Business, but it is not clear what kinds of benefits firms gain through e-Business. In this paper, we examine whether firms' economic benefits are related to e-Business activities. For this purpose, we employ event study methodology and assess the cumulative abnormal returns for 782 e-Business initiatives by firms listed in Korean capital markets. The well-known Dot Com Effect is verified empirically by this study. The results of this study indicate that e-Business potential is highly valued in the capital market, and e-Business firms are expected to create significant benefits in the future period.

Original languageEnglish
Pages (from-to)41-56
Number of pages16
JournalElectronic Commerce Research and Applications
Issue number1
Publication statusPublished - 2002

Bibliographical note

Funding Information:
This work was supported by Korea Research Foundation Grant (KRF-2001-2-0770).

All Science Journal Classification (ASJC) codes

  • Computer Science Applications
  • Computer Networks and Communications
  • Marketing
  • Management of Technology and Innovation


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