this research study the effect of investment in enterprise resoursce planing(ERP)supply chain management(sCM)system on a firms long-term stock price performance and profitability measures such as return on assest and return on sales.the result are based on a sample of 558 announcements of ERP implementation 420 SCM implementation.our analysis of the financial bene fits if these implementation gives mixed results.in the case of ERP systems we observe some evidence of improvement in profitability but not in stock returns.the results for imprivements in profitability are stronger in the case of ERP system.on average adopters of SCMsystem positive stock returns as well as improvements in profitability.althogh our results not uniformly positive across the diferent enter prise system(ES) they are encouraging in the sense that despite the high implementation costs.this should make less help to concerns that some have expressed about the viability of ES given the highly publicized implementation problems at some firms.
