Shareholder wealth implications of software firms’ transition to cloud computing: a marketing perspective

This empirical study investigates how software firms transitioning to cloud computing impact their shareholder wealth. Using a large dataset of publicly traded B2B software companies, the research finds that an unexpected increase in cloud revenue positively affects stock returns and reduces risk for these firms. The study also reveals that the benefits of this transition are amplified in more mature markets and when accompanied by greater advertising investment, suggesting strategic considerations are crucial for maximizing the financial advantages of moving to the cloud.