THE IMPORTANCE OF INFORMATION TECHNOLOGY: AN EMPIRICAL AND LONGITUDINAL STUDY OF THE ANNUAL REPORTS OF THE 50 LARGEST COMPANIES IN THE UNITED STATES

ABSTRACT

This study examines the relative importance of information technology through content analysis of annual reports. The annual reports of the Fortune 50 are reviewed for inclusion of both common and leading edge information technology terms. The analysis finds that leading edge information technology terms are rarely mentioned in current annual reports. Through a longitudinal study comparing annual reports of these large companies between 1998 and 2002, it is also determined that information technology terms are receiving less prominence and mentions in current reports. A t-Test of paired sample test of means and Wilcoxon signed rank test found statistically significant declines in both inclusion and mention of most common information technology firms. The author proposes three possible explanations for the poor showing for information technology. Further study is recommended to determine the reasons for these results.