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Abstract: This study explores the association between ERP adoption and stock price volatility (SPV). An ERP software reshapes information collected, processed, and disseminated. We examine whether ERP usage influences the stock price volatility of Egyptian firms. Our investigation is among the first to examine how ERP usage affects SPV, an overall outcome measure of a firm’s information environment. The Findings document that ERP has a significant and negative association with SPV. Stock price volatility (SPV) relationships have expanded the literature on ERP facts. ERP is essential for both strategic and operational logistics decisions. This study also gives strong evidence that ERP-adopted firms help to reduce the risk of stock price volatility and build a good relationship with the shareholders. Overall, it showed the financial effect of ERP in the emerging economy context of Egypt.OLS Regression Analysis 115 organizations in Egypt were edited in 1150 observations registered from 2011 to 2020 on the Egyptian Stock Exchange (ESE). The main results of tests are robust after analysis with a cluster of the standard errors by companies' change of critical variables. |
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