Understanding IT Governance Effectiveness in Asia: An Event Study

Josephine Chong, Linh N. K. Duong

Research output: Contribution to journalArticle


The study seeks to examine the impact of Information technology (IT) governance structure, process and relational mechanisms on firm performance. Using an event study, we collected a sample of 70 announcements of IT governance adoption investments. We found that most firms adopt all three types of IT governance mechanisms. IT governance structural mechanisms have a positive impact on firm’s profitability. In contrast, IT governance process and relational mechanisms have a negative association with firm performance. More interestingly, the findings provide insight for organizations that they should realize the potentially negative impact of the controls requirements of Sarbanes-Oxley Act Section 404 and IT leadership on firm performance.
Original languageEnglish
Pages (from-to)29-54
JournalPacific Asia Journal of the Association for Information Systems
Issue number1
Publication statusPublished - 31 Mar 2017
Externally publishedYes


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