The Interactive Effect of Board Monitoring and Chief Information Officer Presence on Information Technology Investment

ABSTRACT

We investigate the impact of board monitoring on information technology (IT) investment, and the chief information officer (CIO) presence’ role on this relationship. We argue that firms with a vigilant board of directors will devote greater funds to IT. The results indicate that the outside directors’ ratio positively influences IT investment, but the chief executive officer duality negatively influences it. Further, the CIO presence weakens the relationship between the outside directors’ ratio and IT investment.

KEYWORDS:

• IT investment
• CIO presence
• board monitoring
• CEO duality
• agency theory

Additional information

Notes on contributors

Serdar Turedi

Serdar Turedi holds a Ph.D. from the Old Dominion University and he is an assistant professor of business analytics at the Purdue University Northwest. His main research areas include the business value of information technology (IT), Enterprise Resource Planning (ERP) systems and user emotions, business analytics, and project management. His research has been published in highly regarded academic journals such journals as Communications of the Association for Information Systems (CAIS). He brings expertise on strategic management of IT and hierarchical regression analysis into the project.