Determinants of information technology investments: The case of ATM in an emerging economy

Ou, Chin S.; Yen, David C.; Hung, Chia-Sheng

doi:10.1016/j.adiac.2009.08.008

Cited by 8 publications

(6 citation statements)

References 21 publications

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“…The variations in ATM deployment do not basically different across banks based on their cost efficiency and number of branches. This result is inconsistent with the finding investigated by ( Ou, 2009 ), found both cost efficiency and number of branches have significant impact on ATM deployment.…”

Section: Resultscontrasting

confidence: 99%

“…Thus, the relationship between operating expense and ATMs investment are positive. Cost efficiency is the ratio of operating expense to total deposit ( Ou, 2009 ) for this study. Finally, when the bank expands the number of branches for deposit mobilization, it may also expand the technology like ATM to convince and attract customers in line with the branch (Ibid).…”

Section: Methodsmentioning

confidence: 99%

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Determinants of automated teller machine deployment in commercial banks of Ethiopia

Adane

Wale

Meried

2021

Heliyon

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This is a PDF file of an article that has undergone enhancements after acceptance, such as the addition of a cover page and metadata, and formatting for readability, but it is not yet the definitive version of record. This version will undergo additional copyediting, typesetting and review before it is published in its final form, but we are providing this version to give early visibility of the article. Please note that, during the production process, errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain.

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Section: Resultscontrasting

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Determinants of automated teller machine deployment in commercial banks of Ethiopia

Adane

Wale

Meried

2021

Heliyon

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“…Different proxies of IT have been used in literature to examine the impact of IT on profitability of banks in the form of index and in components, as in this research the impact is to be measured in components, Therefore, number of ATMs and investment in bank software have been employed as proxies of IT. Number of ATMs as a proxy of IT has been used in various studies (Karimzadeh et al, 2014;Jesudasan et al, 2013;Ou, Yen & Hung, 2009;Holden & El-Bannany, 2004;Alpar & Kim, 1990), investment in bank software has also been employed as a proxy of IT in literature by different researchers (Safari & Yu, 2014;Jesudasan et al, 2013;Jalal-Karim & Hamdan, 2010;Beccalli 2007). IT components are part of a multitude of factors that affect banks returns to control for other factors and for a more comprehensive and theoretically robust model to examine the relationship amongst IT and bank profitability bank size represented by total assets has been added as a control variable.…”

Section: Empirical Modelsmentioning

confidence: 99%

“…IT components are part of a multitude of factors that affect banks returns to control for other factors and for a more comprehensive and theoretically robust model to examine the relationship amongst IT and bank profitability bank size represented by total assets has been added as a control variable. Bank size has been used as a control variable in existing literature by several authors (Karimzadeh et al, 2014;Safari & Yu, 2014;Ou, Yen & Hung, 2009). Therefore, the following two models are estimated empirically to measure the impact of IT on commercial banks profitability; ROA i,t = β0 + β1ROAi,t-1+ β2LNBS i,t + β3LATM i,t + β4LNTA i ,t + μi,t…..……model 1 ROE i,t = β0 + β1ROEi,t-1 + β2LNBS i,t + β3LATM i,t + β4LNTA i,t + μ i,t….... ------------------------------------------------------------------------------------------------------------------------------ To correct for potential endogeneity bias, relevant lagged dependent variables have been added in both the models, whereas independent variables natural logarithm has been taken to correct for heteroscedasticity.…”

Section: Empirical Modelsmentioning

confidence: 99%

Profitability Paradox: Evidence from Commercial Banks in Pakistan

Hamid

Mehmood

Ahmad

2019

SIJMB

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It is generally believed that information technology (IT) impacts the organizational profitability positively however empirical evidence has remained inconclusive. This was first highlighted by Solow (1987), labelled as Solow’s paradox, and later labelled as profitability paradox by Beccalli (2007). The persistence of inconclusive empirical literature provides the impetus of this research to investigate the impact of different components of IT on banks profitability in Pakistan from 2009-2016 for a sample of 25 Pakistani commercial banks. Return on assets (ROA) and return on equity (ROE) have been used as indicators of bank profitability whereas two different components of IT, number of ATMs and investment in banks software have been employed as proxies of IT. Empirical results reveal that investment in bank software appears to have a positive influence on bank profitability, while the acquisition of ATMs seems to reduce the profitability of banks. It can be concluded that IT paradox is not necessarily a paradox of IT in totality and may be termed as IT component paradox.

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“…Ou et al [41] propose a framework for the investment of ATMs. Th ey investigate investment from three diff erent perspectives: scale, deposit service, and cost.…”

Section: Hybrid Methodsmentioning

confidence: 99%

A Review on Methods for the Assessment of Information System Projects

Özturan

Basarir-Ozel

Akar

2016

JITA

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Abstract:Recently, it is inevitable that businesses invest in many information system (IS) projects in order to gain a competitive advantage within the internal industry and global environment. The important point is the selection of the appropriate IS environment, hence the optimal IS investment methods with respect to changing technological needs. In this respect, both empirical and conceptual studies are reviewed to identify the relevant IS/IT investment methods. After an extensive literature review, 51 relevant articles are identifi ed. The IS/IT investment methods studied in these articles are classifi ed and examined within the three categories: fi nancial, non-fi nancial, and hybrid. The results reveal that most of studies focus on a mixed usage of fi nancial and non-fi nancial methods called hybrid methods, whereas fi nancial methods are used more frequently when compared to non-fi nancial methods during the selected research period. On the other hand, the usage of pure fi nancial methods decreases in recent years, while the usage of hybrid and non-fi nancial methods increases in the same period.

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Determinants of information technology investments: The case of ATM in an emerging economy

Cited by 8 publications

References 21 publications

Determinants of automated teller machine deployment in commercial banks of Ethiopia

Determinants of automated teller machine deployment in commercial banks of Ethiopia

Profitability Paradox: Evidence from Commercial Banks in Pakistan

A Review on Methods for the Assessment of Information System Projects

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