Information Systems Expenditures and Firm Value

2004 ◽  
pp. 29-42 ◽  
Author(s):  
Ram S. Sriram ◽  
Gopal V. Krishnan ◽  
Kam-Wah Lai
Keyword(s):  
Information System ◽  
Competitive Advantage ◽  
Financial Services ◽  
Firm Value ◽  
Value Relevance ◽  
Market Value ◽  
Positive Association ◽  
Financial Information ◽  
Services Sector ◽  
Financial Services Sector

This chapter examines the value relevance of disclosures about IT expenditures. Using information about the amount of consulting fees paid to the incumbent auditor by their clients for designing and developing a financial information system (FIS), the study examines whether there is an association between market value of equity and IT expenditures. Since the financial services industry is an intensive user of IT and often relies on IT as a source of competitive advantage, the study uses a sample of firms from the financial services sector. This chapter contributes to our understanding of the importance of disclosures about IT expenditures in assessment of firm value. The results show positive association between investments in IT and market value of equity. Overall, the findings support the notion that investors perceive investments in IT as value-relevant.

scholarly journals The Role of Internal Control and Firm-Specific Characteristics on Firm Value: Evidence from Indian Financial Services Sector

2020 ◽  
Vol 4 (1) ◽  
pp. 117-133
Author(s):  
Anju Kalluvelil Janardhanan ◽  
Uma V R
Keyword(s):  
Stock Returns ◽  
Firm Size ◽  
Internal Control ◽  
Financial Services ◽  
Firm Value ◽  
Firm Age ◽  
Services Sector ◽  
Financial Services Sector ◽  
Size Firm

This research determines the role of firm-specific characteristics such as firm size, firm age, liquidity, firm complexity, board independence, institutional ownership, non-performing assets, annual volatility of stock returns, leverage and internal control represented by Enterprise Risk Management (ERM) and Big4 auditor on the firm value measured using Tobin’s Q, Return On Equity (ROE) and Return On Assets (ROA). This proposition is addressed with the sound statistical investigation of 67 companies listed in the NSE financial services sector by utilizing annual panel data for 11 years from 2007-17. The important findings of the study are that the purchasers consider firm size, firm age, liquidity, the volatility of stock returns, and non-performing assets. ROA shows that the management has to focus on firm size, firm age, and volatility of stock returns. ROE informs that the investors will look into firm size, firm age, institutional ownership, non-performing assets, leverage, firm complexity, and volatility of stock returns.

Protection of Customers for Management of Digital Banking Services (Study at PT. BRI Unit Boyolali)

2020 ◽  
Vol 3 (2) ◽  
pp. 170
Author(s):  
Herdian Ayu Andreana Beru Tarigan ◽  
Darminto Hartono Paulus
Keyword(s):  
Information Technology ◽  
Financial Services ◽  
Banking Industry ◽  
Service Innovation ◽  
Quality Of Services ◽  
Legal Research ◽  
Banking Services ◽  
Services Sector ◽  
Financial Services Sector

<p>Increasing competition in the Indonesian banking industry has encouraged many banks to improve the quality of services to customers by utilizing information technology developments. Service innovation in the use of information technology encourages banks to enter the era of digital banking services. However, the development of digital banking services also increases the risks faced by banks. The purpose of this study is to provide an overview of the implementation of digital banking services and customer protection for risks from digital banking services. The method used in this study is an empirical legal research method. The results of this study indicate that the implementation of digital banking services is regulated by OJK Regulation No.12/POJK.03/2018. The existence of this OJK Regulation is expected by banks as providers of digital banking services to always prioritize risk management in the use of information technology. In addition, this study also shows the existence of 2 types of customer protection for the use of digital banking services, namely preventive protection in the form of legislation related to customer protection in the financial services sector and repressive protection in the form of bank accountability for complaints from customers using digital banking services.</p>

scholarly journals The Interplay between Board Characteristics, Financial Performance, and Risk Management Disclosure in the Financial Services Sector: New Empirical Evidence from Europe

2021 ◽  
Vol 14 (2) ◽  
pp. 79
Author(s):  
Gratiela Georgiana Noja ◽  
Eleftherios Thalassinos ◽  
Mirela Cristea ◽  
Irina Maria Grecu
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Financial Services ◽  
Structural Equation ◽  
Supervisory Board ◽  
Fiscal Year ◽  
Services Sector ◽  
Board Characteristics ◽  
Financial Services Sector ◽  
Thomson Reuters

This paper empirically evidences the role played by board characteristics (skills, diversity, structure, independence) in supporting risk management disclosure and shaping the financial performance of European companies operating in the financial services sector. We exploit data selected from Thomson Reuters Eikon database in 2020 for the last fiscal year 2019 (FY0) on a longitudinal sample of 144 companies with the head offices in Europe (25 countries). Following an original empirical approach based on two modern financial econometric techniques, namely structural equation modelling (SEM) and network analysis through Gaussian graphical models (GGMs), the research endeavor outlines the decisive importance of an optimal board size, enhanced management skills, upward gender diversity (encompassed by women participation on board management), and structure (mainly a two-tier type, one management board, and a distinctive supervisory board) as fundamentals of risk management strategies, leading to improved financial achievements and a higher profitability for the analyzed companies.

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