Market reaction to the announcement of online sales channel investment in enterprises: Evidence from a relatively stable market environment

Yang Lei (), Qiang Zhou (), Waiman Cheung (), Xiling Cui () and Ling Peng ()
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Yang Lei: Southern University of Science and Technology
Qiang Zhou: Hong Kong Shue Yan University
Waiman Cheung: the Chinese University of Hong Kong
Xiling Cui: Hong Kong Shue Yan University
Ling Peng: College of Information Management and Statistics, Hubei University of Economics

Electronic Commerce Research, 2023, vol. 23, issue 2, No 13, 973-1005

Abstract: Abstract Although relevant literature investigates the economic value of online sales channel (OSC) from the perspective of the stock market, knowledge on this topic remains insufficient or unclear because existing studies are conducted under an extremely turbulent market environment and have not considered different aspects. This study aims to examine the topic by focusing on the market reactions to OSC investment from three aspects (namely, the innovativeness, business model and goods types) in a relatively stable market environment to fill in the research gap. Empirical results, obtained using 69 firm-level OSC announcements from October 2002 to September 2007, show that the stock market reacts positively to OSC investment by firms. Additionally, the stock market reactions to OSC investment mainly depend on two key characteristics, namely investment innovativeness and business model applied.

Keywords: Online sales channel; Event study; Investment innovativeness; Business model; Goods type (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s10660-021-09500-0

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