Investment refers to acquiring assets with the goal of generating income or appreciating in value over time. When firms, whether public or private, make investments, they are subject to the dynamics of market supply and demand. This means that investments in certain assets, including Information Technology (IT) and Information Systems (IS), can be influenced by uncontrollable external events.
This study aims to explore the impact of government policies and other significant events on IT/IS investments in Indian companies. The analysis is based on data from 4,009 companies spanning the period from 2010 to 2023.
To understand the external influences, a trend analysis of various company metrics was conducted. The findings were then compared to potential external factors, such as government policies and global events. The study employed multiple analytical models, including:
- Econometric models
- Machine learning decision tree models
- Deep Learning Neural Networks
This analysis provides valuable insights into how external factors affect IT/IS investments in Indian firms.