The Reaction of Financial Analysts to Enterprise Resource Planning (ERP) Implementation Plans

Hunton, James E.; McEwen, Ruth Ann; Wier, Benson

doi:10.2139/ssrn.302826

Cited by 32 publications

(47 citation statements)

References 11 publications

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“…They conclude that investors expect future positive net cash flows to arise from ERP system implementations. Hunton et al (2002) find analysts positively revise their earnings forecasts after receiving ERP adoption announcements.…”

Section: Background and Hypotheses Development Erp System Implemementioning

confidence: 99%

“…These studies, using accounting-based performance measures (e.g., financial ratios), have generally found mixed results related to the link between ERP adoption and post-implementation firm performance (e.g., Poston and Grabski 2001;Hitt et al 2002). However, researchers find that positive relationships become more evident when adopters are compared to nonadopters (Hunton et al 2003) and adopters use nonfinancial performance incentives in executive compensation contracts (Wier et al 2005). The results are also stronger when they control for the ERP system vendor used and ERP system modules installed (Nicolaou 2004).…”

Section: Background and Hypotheses Development Erp System Implemementioning

confidence: 99%

“…While the above advantages likely improve internal management accounting/decisionmaking and should cause ERP adopters to outperform nonadopters (Hunton et al 2003), the ERP setting may likewise improve managers' ability to manage the financial information they provide to external users. First, ERP systems should improve the information set of management, exacerbating the level of information asymmetry between managers and external users of financial reports.…”

Section: Earnings Managementmentioning

confidence: 99%

“…Prior accounting research supports these positive expectations. ERP adoption announcements engender positive market responses and ERP implementations have been linked to improved operational performance (e.g., Hayes et al 2001;Hunton et al 2003).…”

Section: Introductionmentioning

confidence: 99%

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The Effect of ERP System Implementations on the Management of Earnings and Earnings Release Dates

Brazel

Dang

2008

Journal of Information Systems

138

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ERP systems have become the system of choice for the majority of publicly traded companies and have radically changed the way accounting information is processed, prepared, audited, and disseminated. In this study, we examine whether ERP system implementations have affected the extent to which firms manage earnings amounts and release dates. We find, for a sample of ERP adopters, that implementations led to increases in the absolute value of discretionary accruals (i.e., greater earnings management). We also find a positive relationship between the extent of ERP module adoption and the extent of earnings management. With respect to earnings release dates, firms with incentives to increase the timeliness of their release dates experienced a decrease in reporting lag after implementing ERP systems. These results should be of interest to financial statement preparers initially adopting or implementing new versions of ERP applications, auditors serving clients with ERP systems, and regulators overseeing the financial markets and consolidation in the ERP industry.

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Section: Background and Hypotheses Development Erp System Implemementioning

confidence: 99%

Section: Background and Hypotheses Development Erp System Implemementioning

confidence: 99%

Section: Earnings Managementmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The Effect of ERP System Implementations on the Management of Earnings and Earnings Release Dates

Brazel

Dang

2008

Journal of Information Systems

138

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“…The implementation and maintenance cost of the ERP systems is very high, typically ranging from 15 to 50 million US dollars (Hunton and McEwen, 2002). Therefore, the project of implementing an ERP system is usually the largest single project that an enterprise would ever launch in its lifetime.…”

Section: Introductionmentioning

confidence: 99%

Enterprise resource planning survey of Korean manufacturing firms

Lee¹,

Moon²,

Lee³

2006

IJMED

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Enterprise Resource Planning (ERP) systems are packaged software designed to integrate and optimise the business processes of an enterprise. The ERP systems have been embraced by industry as a de facto solution to integrate their business functions. The adoption of the ERP concept is a truly global phenomenon. This paper reports a recently completed survey study on Korean manufacturing firms. The study used the same survey questionnaires used in two previous surveys done on US and Swedish manufacturing firms. Our objective is to determine the extent of adoption of the ERP system in the Korean manufacturing firms, their motivations, implementation strategies and benefits obtained, and to provide useful data to draw similarities and differences between different countries' practices.

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ERP Business Speed – A Measuring Framework

Yordanova

2021

Communications in Computer and Information Science

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The Reaction of Financial Analysts to Enterprise Resource Planning (ERP) Implementation Plans

Cited by 32 publications

References 11 publications

The Effect of ERP System Implementations on the Management of Earnings and Earnings Release Dates

The Effect of ERP System Implementations on the Management of Earnings and Earnings Release Dates

Enterprise resource planning survey of Korean manufacturing firms

ERP Business Speed – A Measuring Framework

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