This paper presents the results of an exploratory study that examined a possible connection between investments in Information Technology and changes in the market value of companies in Japan. The event-study methodology, which focuses on the change of stock price as a result of announcements about Information Technology investments, was applied. The main contribution of this project was to examine the connection between Information Technology investments and their perceived business value in Japan, where relatively little research on this topic was conducted. The results indicate that in Japan, the stock market may respond in different ways to similar announcements about investments in Information Technology.

Event-study methodology, Information Technology investment announcements, Information Technology paradox, market value, productivity paradox