Information Technology Spending Association with Organizational Productivity and Performance

2011 ◽  
pp. 89-124 ◽  
Author(s):  
Carlos J. Navarrete ◽  
James B. Pick
Keyword(s):  
Federal Government ◽  
Efficiency Index ◽  
Productivity Index ◽  
Bank Performance ◽  
Operational Cost ◽  
Organizational Productivity ◽  
Bank Efficiency ◽  
Productivity Indices ◽  
And Performance ◽  
The Relationship

This chapter examines the relationship between IT expenditure and bank profitability, efficiency, productivity, and performance for Mexican banks. The principal research method is correlation analysis between IT expenditure and four bank performance indices: a profitability index that combines bank profits, income, operational cost, and financial cost; a performance index that includes credit and bank income market share; a productivity index consisting of the number of employees, branches, and managers; and an efficiency index that includes banks’ operational cost and income. The unit of analysis is the firm. The data are from the 18 banks comprising the Mexican banking industry from 1982–1992, when Mexico’s banks were owned by the federal government. The study’s interpretations are supported by interviews with four bank CIOs and a CEO, in office during the period. The main findings are that bank IT expenditure ratio is positively correlated to bank performance and productivity indices, whereas IT expenditure is not correlated with bank efficiency or profitability indices. There are fluctuations in the strength of correlation during the 11-year period, which are explained. The chapter results not only reject the productivity paradox but also provide insights to explain the paradox and IT contribution to the firm performance.

Ethical values and bank performance: evidence from financial institutions in Malaysia

2020 ◽  
Vol 11 (1) ◽  
pp. 233-256
Author(s):  
Tuan Azma Fatiema Tuan Ibrahim ◽  
Hafiza Aishah Hashim ◽  
Akmalia Mohamad Ariff
Keyword(s):  
Banking Sector ◽  
Positive Association ◽  
Annual Reports ◽  
Bank Performance ◽  
Ethical Values ◽  
Return On Assets ◽  
Content Type ◽  
And Performance ◽  
The Relationship

Purpose The purpose of this study is to investigate the relationship between ethical values and performance in the context of the banking sector in Malaysia. Design/methodology/approach Based on the philanthropic model, this study posits that firms undertaking zakat and charity are ethical firms. Zakat disclosure index (ZDI) and charity disclosure index (CDI) were constructed to measure ethical values. This study hypothesises that ethical values are positively associated with bank performance. Ethical values (i.e. CDI and ZDI) and financial performance data (i.e. return on assets) were collected from the disclosures made in the annual reports of 50 banks for a period of five years (2010-2014). Findings A positive association was found between zakat disclosure and bank performance. The results indicate that higher zakat disclosure is associated with greater bank performance. However, no relationship was found between charity disclosure and bank performance. Research limitations/implications Considering the limitation of the index used in this study, other dimensions such as corporate governance, sustainability, products and environment can be considered in the development of index to measure ethical values in future studies. Originality/value This study offers additional explanation on the relationship between ethical values and performance by examining the role of zakat disclosures that characterize the unique aspects of Malaysian companies.

Gender makes the difference: the moderating role of gender on the relationship between management structure and performance in banking

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nikola Stefanovic ◽  
Lidija Barjaktarovic
Keyword(s):  
Gender Diversity ◽  
Threshold Level ◽  
Bank Performance ◽  
Content Type ◽  
Executive Authority ◽  
The Difference ◽  
And Performance ◽  
The Relationship ◽  
Executive Boards

Purpose This study aims to explore the factors moderating possibly indirect relationships between gender diversity and its effect on bank performance. The causality of this relationship remains unclear. Design/methodology/approach The sample consists of all banks (n = 27) operating in Serbia. Findings The gender diversity-performance relationship is indirect. The gender diversity of executive boards positively impacts bank performance, over a threshold level. This is observed only in banks where gender diversity is extended to more than one level of executive authority. Research limitations/implications Gender diversity should be fostered, particularly in small and competitive markets. The gender diversity-performance link is based on gender-related social interactions, which are interdependent and should not be taken into account as isolated factors. Originality/value To the knowledge, this is the first study to provide insight into indirect, gender related, moderatory interactions effecting gender diversity – performance link, in banking.

INTELLECTUAL CAPITAL AND PERFORMANCE IN THE SEMICONDUCTOR INDUSTRY

2019 ◽  
Vol 65 (05) ◽  
pp. 1323-1348
Author(s):  
KUO-CHENG KUO ◽  
WEN-MIN LU ◽  
GRACE TZU-YI CHANG
Keyword(s):  
Intellectual Capital ◽  
Integrated Circuit ◽  
Semiconductor Industry ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Efficient Production ◽  
Ic Design ◽  
Ic Packaging ◽  
And Performance ◽  
The Relationship

This paper researches a method of rating competitiveness involving the estimation of the performance of semiconductor firms through Malmquist productivity index (MPI) and metafrontier Malmquist productivity index (MMPI). Regressions are used to find the relationship between intellectual capital and performance. Overall, technological innovations contribute to the improvement in the integrated circuit (IC) design sub-industry while increases in efficient production allow the IC foundry sub-industry and the IC packaging and testing sub-industry to maintain position. The regression results show human capital was critical to technological innovation while relational capital was important to efficient production.

Community bank product design within an asymmetric competitive market

2016 ◽  
Vol 34 (5) ◽  
pp. 752-772 ◽  
Author(s):  
Gregory J McKee ◽  
Albert Kagan
Keyword(s):  
Business Cycle ◽  
Financial Institutions ◽  
Cost Efficiency ◽  
Bank Performance ◽  
Community Banks ◽  
Bank Efficiency ◽  
Content Type ◽  
Community Bank ◽  
Relationship Of ◽  
The Relationship

Purpose – The purpose of this paper is to assess product and service arrays of community banks within competitive markets that are impacted by varying sized financial institutions. A cost efficiency model is used to understand the relationship of product offerings and business cycle response upon bank performance. Design/methodology/approach – A cost efficiency model is used to understand the relationship of product offerings and business cycle response upon bank performance. Markets comprised of alternate size and type of financial institutions are compared. Findings – Greater values of X_EFF i when institutions compete are observed in this analysis. Cost efficiency is lowest when community banks are the only institution in the market, and second lowest when credit unions are the only competing institutions. Call report data are analyzed from 1994 to 2013. The number of big banks increases community bank efficiency and efficiency of large banks. Also, the number of community banks does affect big bank cost efficiency. The magnitude of the effect pertaining to the number of community banks upon big bank efficiency is much smaller than that of the number of big banks on community bank efficiency. Originality/value – This study considers cost efficiency and profitability as measures of institution on the performance of a competing institutional type. The modeling approach uses cost efficiency as a method of observing the performance of financial institutions and an explanation of how firms persist, grow, and respond to changes in technology or regulation. The effects of the presence of each type of financial institution on the performance of another type are compared. Situations in which any number of one or more institutional types is present in a market are considered for analysis purposes.

scholarly journals Realizing the Performance Benefits of Workforce Diversity in the U.S. Federal Government: The Moderating Role of Diversity Climate

2019 ◽  
Vol 49 (1) ◽  
pp. 141-165 ◽  
Author(s):  
Kuk-Kyoung Moon ◽  
Robert K. Christensen
Keyword(s):  
Organizational Performance ◽  
Federal Government ◽  
Functional Diversity ◽  
Negative Relationship ◽  
Racial Diversity ◽  
Two Dimensions ◽  
Diversity Climate ◽  
And Performance ◽  
The Relationship ◽  
The U.S

Conventional wisdom in diversity research holds that biodemographic diversity is harmful to performance, whereas job-related diversity is beneficial to performance. Empirical evidence in this area, however, remains mixed and inconclusive. Due to this inconsistency, scholars have recently called for a search for moderators of the relationship between diversity and performance to expand the theoretical perspectives on organizational diversity. In this context, we examine how biodemographic (gender, race, and age) and job-related (function and tenure) diversity influence organizational performance and how diversity climate as a potential moderator shapes the relationships between the two dimensions of diversity and performance. Using panel data from the U.S. federal government, we find that racial and tenure diversity have positive relationships with organizational performance, whereas functional diversity has a negative relationship. Further analysis reveals that a diversity climate positively moderates the relationship between racial diversity, functional diversity, tenure diversity, and organizational performance. Theoretical and practical implications are discussed.

scholarly journals Examining the relationship between CEO remuneration and performance of major commercial banks in South Africa

2015 ◽  
Vol 13 (1) ◽  
pp. 115-124
Author(s):  
Mahlomola Khumalo ◽  
Andries Masenge
Keyword(s):  
South Africa ◽  
Firm Performance ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Banking Industry ◽  
Bank Performance ◽  
Measurement Instruments ◽  
New Perspective ◽  
And Performance ◽  
The Relationship

The relationship between CEO remuneration and firm performance continues to receive much attention. Although the focus of most of the studies is across sectors, attention is increasingly being directed towards the banking industry. At the same time, controversy around what is deemed excessive remuneration of CEOs in the light of not so impressive firm performance across sectors continues. The 2008 global financial crisis and subsequent problems in the banking industry have increased interest in the dynamics of CEO remuneration and bank performance. This study, which examines the relationship between CEO remuneration and bank performance in South Africa, aims to bring a new perspective to the on-going research and debate. The data used is for the years 2008 – 2013, and a purposive sampling method was employed to select a sample frame that consists of five major commercial banks in South Africa. The results suggest that not all measurement instruments used confirmed that a relationship between CEO remuneration and bank performance existed. In the overall, the results of the study do show that the remuneration of the CEO in the banking industry is such that it does have a significant influence on the performance of a bank.

scholarly journals Corporate Image Management and Bank Performance in Nigeria

2021 ◽  
Vol 04 (05) ◽  
Author(s):  
Patrick Ologbenla ◽  
Keyword(s):  
Corporate Governance ◽  
Panel Data Analysis ◽  
Random Effect ◽  
Customer Retention ◽  
Secondary Data ◽  
Corporate Image ◽  
Bank Performance ◽  
Image Management ◽  
And Performance ◽  
The Relationship

The lack of consensus on the relationship between corporate image management and bank performance prompted this research. The study investigates the relationship between corporate image management and performance of deposit money banks in Nigeria between 2007 and 2017. Quantitative approach of methodology where secondary data are collected analysed on relevant variables for eight deposit money banks which include the five tier one lenders and three tier two lenders is applied. Panel data analysis is adopted as the estimating technique. From the result, the random effect result shows that only corporate governance out of the proxies of corporate image management has significant impact on customer retention of the banks. Both corporate social responsibility and environmental responsibility failed to have significant impact on customer retention. The study recommends that that the banks should continue improving on their corporate governance as it is a good measure of corporate image management that contribute significantly to their performance.

scholarly journals Managerial Perception of Human Capital, Innovations, and Performance: Evidence from Banking Industry

2021 ◽  
Vol 32 (5) ◽  
pp. 446-458
Author(s):  
Nela Milosevic ◽  
Marina Dobrota ◽  
Veljko Dmitrovic ◽  
Sladjana Barjaktarovic Rakocevic
Keyword(s):  
Human Capital ◽  
Banking Industry ◽  
Multiple Regression Model ◽  
Bank Performance ◽  
Two Phase ◽  
Bank Management ◽  
General Managers ◽  
Managerial Perception ◽  
And Performance ◽  
The Relationship

This paper aims to examine the relationship between the managerial perception of human capital, innovations, and bank performance. We specifically sought to examine the influence of human capital on bank performance, by introducing the factors of innovation speed and quality. The study was taken in the Serbian banking industry, with the focus on the perception and the viewpoint of CEOs and general managers of different departments. We used a two-phase survey to design the questionnaire and the correlation and regression analyses to examine our hypotheses. Our findings propose that, from managers’ perspective, human capital is critical to the success of banks, and that innovation speed is more influential than its quality. The backward multiple regression model shows that human capital and innovation speed account for 67.5% of the variability of the bank performance. The findings of this research can contribute to bank management policies by revealing how to enhance bank performance by focusing on human capital and innovation agility and readiness. The proposed research model could potentially be implemented in other sectors and industries to hopefully endorse the significance of the detected relationships.

scholarly journals Analisis Determinan Pangsa Pasar Bank Syariah dengan Kinerja Bank Syariah di Indonesia Periode 2011-2016

2018 ◽  
Vol 5 (2) ◽  
pp. 135-142
Author(s):  
Sani Noor Rohman ◽  
Karsinah Karsinah
Keyword(s):  
Market Share ◽  
Variance Decomposition ◽  
Capital Adequacy ◽  
Bank Performance ◽  
Operational Cost ◽  
Difference Model ◽  
Banking Market ◽  
Capital Adequacy Ratio ◽  
Banking Development ◽  
The Relationship

Tujuan penelitian ini adalah melihat respon guncangan, dan kontribusi kinerja bank syariah dengan pangsa pasar. Program Akselerasi Pengembangan Perbankan Syariah (PAPBS) Indonesia menargetkan pangsa pasar bank syariah pada tahun 2008 adalah sebesar 5 %. Sedangkan pada tahun 2015 mencapai pangsa pasar perbankan syariah sebesar 15 %.  Namun pada akhir tahun 2016 pangsa pasar masih berada pada 5,29%. Variabel penelitianya adalah Market Share (Pangsa Pasar) dengan Biaya Operasional dan Pembiayaan Operasional (BOPO), Capital Adequacy Ratio (CAR), Return Of Asset (ROA), Finance To Deposte Ratio (FDR), Non Performing Finance (NPF). Hasil analisis penelitian ini, Kinerja bank syariah menunjukkan Pangsa pasar bank syariah merespon positif terhadap varaiabel BOPO, CAR, ROA dan FDR, sedangkan variabel NPF merespon negatif, sedangkan uji Variance Decomposition variabel ROA memiliki kontribusi lebih besar dibandngkan Variabel BOPO, CAR, FDR,dan NPF.   The purpose of this research is to see the relationship, shock response, and contribution of syariah bank performance with market share. The Indonesia Islamic Banking Development Acceleration Program (PAPBS) targets the market share of shariah banks in 2008 amounted to 5%. While in the year 2015 is to achieve sharia banking market share of 15%. But by the end of 2016 the market share is still at 5.29%. The research variables are Market Share with Operational Cost and Operational Financing (BOPO), Capital Adiquacy Ratio (CAR), Return Of Assets (ROA), Finance To Deposte Ratio (FDR), Non Performing Finance (NPF). The method used VAR (Vector Auto Regretion) which theoretically does not occur relationship between variables with VAR In Difference model.. Result of research is The performance of shariah banks shows that the market share of shariah banks responds positively to BOPO, CAR, ROA and FDR variables, whereas NPF variable responds negatively, while the Variance Decomposition variable of ROA has bigger contribution than BOPO, CAR, FDR, and NPF variables

scholarly journals Liquidity creation and bank performance: evidence from MENA

2019 ◽  
Vol 11 (1) ◽  
pp. 27-45 ◽  
Author(s):  
Ahmad Sahyouni ◽  
Man Wang
Keyword(s):  
Commercial Banks ◽  
Data Availability ◽  
Bank Performance ◽  
Islamic Banks ◽  
Content Type ◽  
Mena Countries ◽  
And Performance ◽  
Conventional Banks ◽  
The Relationship ◽  
Conventional And Islamic Banks

Purpose Islamic banks have significantly different balance sheets from their conventional counterparts, leading to different implications in relation to liquidity creation compared to conventional banks. This work, first, investigates the liquidity creation of conventional and Islamic banks in Middle Eastern and North African (MENA) countries between 2011 and 2016. It then tests the relationship between liquidity creation and performance of these banks. Design/methodology/approach It uses the data of 491 commercial banks across 18 MENA countries between 2011 and 2016. The analysis is based on panel data techniques. Findings The banks created US$18.596 trillion of liquidity, about 28.4% of total assets. Conventional banks created more liquidity compared with Islamic banks. Nevertheless, Islamic banks created more liquidity per asset compared with conventional banks. The regression analysis revealed a significant and negative correlation between liquidity creation and performance of the banks using return on average equity (ROAE) measure. However, no significant relationship is observed between liquidity creation and return on average assets (ROAA) of MENA banks. Moreover, there is no difference between Islamic and conventional banks in the relation between liquidity creation and bank performance. Research limitations/implications The data are limited to the period 2011-2016; the period of this study was selected based on yearly data availability from the data source. Accounting measures were used to study the effect of liquidity creation on bank profitability, and the market-based measures were excluded, as there is no uniform sources in these countries that can be used to collect market-based data. Practical implications Bank managers must reach a trade-off between the advantages and disadvantages of liquidity creation, as well as consider the negative relationship between liquidity creation and bank performance when making their decisions. Originality/value First, to the best of the authors’ knowledge, this work is the first to analyse the relationship between the liquidity creation and performance of conventional and Islamic banks in MENA. Second, this study uses a sample of Islamic and conventional banks in MENA that have detailed information on the Orbis Bank Focus dataset, which is the most comprehensive database of commercial banks in the MENA region.

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