Valuation Implication of Information Technology Expenditures in the Banking Industry

銀行業資訊科技支出之價值攸關性

10.6226/NTUMR.2017.JUL.A102-029

廖懿屏(Yi-Ping Liao)；李德冠(Te-Kuan Lee)

information technology ； value relevance ； earnings' persistence ； 資訊科技 ； 價值攸關性 ； 盈餘持續性

臺大管理論叢

27卷2期（2017 / 06 / 01）

35 - 56

英文

Information technology (IT) expenditure has been regarded as critical in maintaining the competitiveness in the banking industry. However, existing literatures fail to document consistent evidence on the positive effect of IT expenditures on banks' productivity measures. This study is among the few that explore the valuation implication of IT expenditures based on U.S. banks. By utilizing the Ohlson (1995) model, our results indicate that: (1) IT expenditures are significantly and positively related to market values, suggesting that they are value-relevant; (2) IT intensity has positive impacts on earnings' multipliers (i.e., the persistence of earnings). Overall, this paper contributes to the literature by demonstrating the value relevance of IT expenditures for banks, an issue that few prior studies have addressed. Additionally, the quality of the management's decision-making is enhanced by ascertaining the critical role of IT expenditures in improving the earnings' persistence.

現存文獻鮮少發現資訊科技支出對銀行業的正面效益，然不少銀行業公司卻仍舊維持高額的資訊科技支出，並明確指稱資訊科技支出有助於維持及擴展長期之客戶關係或營運品質。運用Ohlson（1995）模型，本研究結果指出：(1)資訊科技支出顯著且正向地影響銀行的市場價值，即資訊科技支出具有價值攸關性。(2)銀行的資訊科技支出水準對於盈餘乘數有正向的影響，亦即可提升盈餘持續性。本研究的貢獻為：(1)提供過去文獻未直接發現的資訊科技支出對銀行業價值攸關性之正面證據。(2)藉由瞭解資訊科技支出在改善盈餘持續性上的角色，使管理階層的決策品質進一步提升。

1. American Express. 2010. Form 10-K report. http://www.sec.gov/edgar.shtml. Accessed Jun. 30, 2011.
2. Anderson, M. C., Banker, R. D., and Ravindran, S. 2001. Value implications of relative investments in information technology.
3. Bancorp. 2008. Form 10-K report. http://www.sec.gov/edgar.shtml. Accessed Jun. 30, 2011.
4. Aboody, D.,Barth, M. E.,Kasznik, R.(2004).SFAS No. 123 stock-based compensation expense and equity market values.The Accounting Review,79(2),251-275.
5. Aboody, D.,Lev, B.(1998).The value relevance of intangibles: The case of software capitalization.Journal of Accounting Research,36,161-191.
6. Barth, M. E.,Beaver, W. H.,Landsman, W. R.(1998).Relative valuation roles of equity book value and net income as a function of financial health.Journal of Accounting and Economics,25(1),1-34.
7. Barth, M. E.,Beaver, W. H.,Landsman, W. R.(2001).The relevance of the value relevance literature for financial accounting standard setting: Another view.Journal of Accounting and Economics,31(1-3),77-104.
8. Barua, A.,Kriebel, C. H.,Mukhopadhyay, T.(1995).Information technologies and business value: An analytic and empirical investigation.Information Systems Research,6(1),3-23.
9. Bauwhede, H. V.(2009).On the relation between corporate governance compliance and operating performance.Accounting and Business Research,39(5),497-513.
10. Beccalli, E.(2007).Does IT investment improve bank performance? Evidence from Europe.Journal of Banking & Finance,31(7),2205-2230.
11. Belderbos, R.,Carree, M.,Diederen, B.,Lokshin, B.,Veugelers, R.(2004).Heterogeneity in R&D cooperation strategies.International Journal of Industrial Organization,22(8-9),1237-1263.
12. Bernard, V. L.(1995).The Feltham-Ohlson framework: Implications for empiricists.Contemporary Accounting Research,11(2),733-747.
13. Brown, L. D.,Caylor, M. L.(2009).Corporate governance and firm operating performance.Review of Quantitative Finance and Accounting,32(2),129-144.
14. Brynjolfsson, E.,Hitt, L.(1996).Paradox lost? Firm-level evidence on the returns to information systems spending.Management Science,42(4),541-558.
15. Cahan, S. F.,Courtenay, S. M.,Gronnewoller, P. L.,Upton, D. R.(2000).Value relevance of mandated comprehensive income disclosures.Journal of Business Finance & Accounting,27(9-10),1233-1265.
16. Chambers, D.,Jennings, R.,Thompson, R. B.(1999).Evidence on the usefulness of capital expenditures as an alternative measure of depreciation.Review of Accounting Studies,4(3-4),169-195.
17. Chambers, D.,Linsmeier, T. J.,Shakespeare, C.,Sougiannis, T.(2007).An evaluation of SFAS No. 130 comprehensive income disclosures.Review of Accounting Studies,12(4),557-593.
18. Chiang, C. C.,Mensah, Y. M.(2004).The determinants of investor valuation of R&D expenditure in the software industry.Review of Quantitative Finance and Accounting,22(4),293-313.
19. Clegg, C.,Axtell, C.,Damodaran, L.,Farbey, B.,Hull, R.,Lloyd-Jones, R.,Nicholls, J.,Sell, R.,Tomlinson, C.(1997).Information technology: A study of performance and the role of human and organizational factors.Ergonomics,40(9),851-871.
20. Collins, D. W.,Kothari, S. P.(1989).An analysis of intertemporal and cross-sectional determinants of earnings response coefficients.Journal of Accounting and Economics,11(2-3),143-181.
21. Council of Economic Advisers(2001).The annual report of the Council of Economic Advisors.Washington, DC:U.S. Government Printing Office.
22. Davis, L. R.,Soo, B. S.,Trompeter, G. M.(2009).Auditor tenure and the ability to meet or beat earnings forecasts.Contemporary Accounting Research,26(2),517-548.
23. Dewan, S.,Kraemer, K. L.(2000).Information technology and productivity: Evidence from country-level data.Management Science,46(4),548-562.
24. Easton, P. D.,Zmijewski, M. E.(1989).Cross-sectional variation in the stock market response to accounting earnings announcements.Journal of Accounting and Economics,11(2-3),117-141.
25. Francis, J.,Schipper, K.(1999).Have financial statements lost their relevance?.Journal of Accounting Research,37(2),319-352.
26. Gu, F.(2005).Innovation, future earnings, and market efficiency.Journal of Accounting, Auditing & Finance,20(4),385-418.
27. Kim, C. S.,Davidson, L. F.(2004).The effects of IT expenditures on banks' business performance: Using a balanced scorecard approach.Managerial Finance,30(6),28-45.
28. Kormendi, R.,Lipe, R.(1987).Earnings innovations, earnings persistence, and stock returns.The Journal of Business,60(3),323-345.
29. Krishnan, G. V.,Sriram, R. S.(2000).An examination of the effect of IT investments on firm value: The case of Y2K-compliance costs.Journal of Information Systems,14(2),95-108.
30. Loveman, G. W.(1994).An assessment of the productivity impact of information technologies.Information Technology and the Corporation of the 1990s: Research Studies,Oxford, UK:
31. Martin-Oliver, A.,Salas-Fumás, V.(2008).The output and profit contribution of information technology and advertising investments in banks.Journal of Financial Intermediation,17(2),229-255.
32. Ohlson, J. A.(1995).Earnings, book values, and dividends in equity valuation.Contemporary Accounting Research,11(2),661-687.
33. Petersen, M. A.(2009).Estimating standard errors in finance panel data sets: Comparing approaches.Review of Financial Studies,22(1),435-480.
34. Santos, B. D.,Sussman, L.(2000).Improving the return on IT investment: The productivity paradox.International Journal of Information Management,20(6),429-440.
35. Scott, W. R.(2007).Financial Accounting Theory.Toronto, Canada:Pearson/Prentice Hall.
36. Shalev, R.(2009).The information content of business combination disclosure level.The Accounting Review,84(1),239-270.
37. Sher, P. J.,Lee, V. C.(2004).Information technology as a facilitator for enhancing dynamic capabilities through knowledge management.Information & Management,41(8),933-945.

1. Wu, Jei-Zheng,Hua, Yu-Hua(2018).Key Risk Factors of Financial Holding Companies in Taiwan: An Integrated Approach of DEMATEL-Based ANP and Risk Management Balanced Scorecard.臺大管理論叢,28(2),205-242.
2. 廖懿屏,郭俐君(2020)。The Benefits of Disclosing Internal Control Weaknesses: Evidence from Taiwanese Banks。臺大管理論叢，30(2)，175-210。
3. (2024)。金融業法定信用損失與IFRS 9預期信用損失之價值攸關性。會計評論，78，45-83。