| dc.description.abstract | The Enterprise Resource Planning (ERP) system is an enterprise information system designed to integrate and optimize the business processes and transactions in a corporation. These business processes do include finance and banking integration and is often done in real-time, mediated by software and technology. Potential advantages of an ERP system comprise of productivity and quality improvements in crucial areas such as cashflow management, budgeting, forecasting, knowledge management, customer service and product reliability. Therefore, ERP systems are expected to increase market value as well as firm performance through innovative efficiency and effectiveness improvements. There are many paper say that ERP announcement has positive effect on market reaction all the globe and shareholder’s wealth overall. Whereas, public news and many investors state that ERP system is a risky investment especially under Vietnamese financial and human resource constraints hence ERP adoption is still not highly appreciated. There is a limitation of reliable academic research paper which confirm whether that statement is true or not in Vietnam market which leads to an urge to conduct this research. This study focus on investigating how market react to ERP implementing announcements of 30 companies listed on Ho Chi Minh Stock Exchange (HOSE) with being aware of some negative reactions from media. This study uses Event Study Method (McWilliams and Siegel, 1997) combined with both the Market Model (Rani et al. 2012) and the Fama-French-Three-Factor Model (Ajit et al. 2014) for estimating expected return. Cross-sectional testing is used to test the significant level of hypothesis outcomes. The results when using both Market Model and Fama-French-Three-Factor Model shows that there is significant average abnormal returns and cumulative average abnormal returns to target shareholder wealth surrounding announcement dates although those returns are negative. | en_US |
