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The profitability of IT (information technology) investments has been under scrutiny for decades, particularly since few studies discussed a productivity paradox related to IT investments in the 1990s. Although publicly traded firms are not required to disclose their IT expenses in their annual reports, in the last few years there has been renewed interest in the topic using different datasets and trying to dig deeper into the sources of profitability.  However, there are still unanswered research questions about the profitability of IT investment. This study digs deeper into this issue and also looks at competitors investing in similar IT applications.

accounting