Impact Of Cloud Computing Adoption On The Market Performance Of Public Enterprise In China

Cloud computing changes the way providing the computing capability to firms, and it is a revolution of the computing technology. Enterprises can reduce the cost of servers or technology to save some time for the assessment and adaption of the various demands in the globalization process. Although we can find some evidence that support the increase of productivity and the decrease of cost in research and practice, whether the cloud computing adoption can increase the market performance of firms in China remains questionable. On the basis of IT investment research, this study tries to use the event study method with the data of63Chinese public companies announcing cloud computing adoption during2006to2013, to explore the market value and corresponding factors which cloud computing brings.Generally, we found that there were significant abnormal market returns after the public companies announced cloud computing investment. Meanwhile, firms with stronger innovativeness leading in market can obtain higher stoke price and more volumes, resulting in more returns. Similarly, enterprises with higher operation efficiency and larger size can achieve much more significant increasing effects. Nevertheless, companies in different industries all get positive market feedback after cloud computing adoption and deployment, and the difference of industry will affect the change of market performance. Finally, along with the spread of cloud computing in China, public firms get more market value from this technology’s investment, further proves the increasing recognition of cloud computing, generating more positive effects.This paper applied theoretical analysis combining with empirical research exploring the impact of cloud computing adoption to enterprise market performance in China, and it has critical theory and practice meaning to firms’deployment value of cloud computing and how they can properly apply this technology to win the core competency in the early phase of Chinese information-based development.