IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxiy2018i4p435-458.html
   My bibliography  Save this article

The Impact of Information and Communication Technology Investments on the Performance of Lebanese Banks

Author

Listed:
  • R.M. Mahboub

Abstract

Previous research on the relationship between investment in information and communication technology (ICT) and bank performance (BP) have been obviously disagreeing. This is because some posit a positive relationship and some argue to the contrary.Thus, this research contribute to the ongoing debate regarding the contribution of ICT to BP by looking at the impact of ICT investments on the performance of a sample of 50 Lebanese banks for the period 2009-2016.Secondary data were collected from the annual report for each bank. CAMELS model is chosen as the dependent variable, while ICT investments (adoption of automated teller machines (ATM), mobile banking (MB), internet banking (IB), telephone banking (TB), debit and credit cards (BC) and point of sale (POS) terminals) is the independent variable.Using multivariate OLS model, the results demonstrate that the application ATM, IB, TB and POS terminals does not significantly affect banks performance. However, the application of MB and offering BC to customers significantly and directly affects performance of banks in Lebanon. Thus, banks in Lebanon are recommended to find a way to increase interest of Lebanese consumers in MB applications and attract more customers by offering them a range of BC tailored to fit their preferences.

Suggested Citation

  • R.M. Mahboub, 2018. "The Impact of Information and Communication Technology Investments on the Performance of Lebanese Banks," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 435-458.
    • Handle: RePEc:ers:journl:v:xxi:y:2018:i:4:p:435-458
    as

    Download full text from publisher

    File URL: https://www.ersj.eu/dmdocuments/2018_XXI_4_35.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Simon Grima & Luca Caruana, 2017. "The Effect of the Financial Crisis on Emerging Markets: A Comparative Analysis of the Stock Market Situation Before and After," European Research Studies Journal, European Research Studies Journal, vol. 0(4B), pages 727-753.
    2. Dr. Nader Alber, 2011. "The Effect Of Banking Expansion On Profit Efficiency Of Saudi Arabia Commercial Banks," Journal of Global Business and Economics, Global Research Agency, vol. 3(1), pages 11-23, July.
    3. N.N. Kosinova & M.S. Tolstel & S.P. Sazonov & K.D. Vaysbeyn, 2016. "Development of Methodological Approach to Enterprise’s Financial Strategy Based on Comprehensive Evaluation of Its Strategic Potential," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 21-33.
    4. Sani Ibrahim, Mr. Saifullahi & Muhammad, Mr. Abubakar, 2013. "Information and Communication Technology and Bank Performance in Nigeria: A Panel Data Analysis," MPRA Paper 49062, University Library of Munich, Germany.
    5. Md. Nur Alam Siddik & Gang Sun & Sajal Kabiraj & Joghee Shanmugan & Cui Yanjuan, 2016. "Impacts of e-banking on performance of banks in a developing economy: empirical evidence from Bangladesh," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(6), pages 1066-1080, November.
    6. Natalia G. Vovchenko & Evgeniy N. Tishchenko & Tatiana V. Epifanova & Mark B. Gontmacher, 2017. "Electronic Currency: The Potential Risks to National Security and Methods to Minimize Them," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 36-48.
    7. Josiah Aduda & Nancy Kingoo, 2012. "The Relationship between Electronic Banking and Financial Performance among Commercial Banks in Kenya," Journal of Finance and Investment Analysis, SCIENPRESS Ltd, vol. 1(3), pages 1-6.
    8. L. Becchetti & David Bedoya & L. Paganetto, 2003. "ICT Investment, Productivity and Efficiency: Evidence at Firm Level Using a Stochastic Frontier Approach," Journal of Productivity Analysis, Springer, vol. 20(2), pages 143-167, September.
    9. Hernando, Ignacio & Nieto, Maria J., 2007. "Is the Internet delivery channel changing banks' performance? The case of Spanish banks," Journal of Banking & Finance, Elsevier, vol. 31(4), pages 1083-1099, April.
    10. Ebrahim Mohammed Al-Matari & Abdullah Kaid Al-Swidi, 2014. "The Effect of the Internal Audit and Firm Performance: A Proposed Research Framework," International Review of Management and Marketing, Econjournals, vol. 4(1), pages 34-41.
    11. Francesca Arnaboldi & Peter Claeys, 2008. "Internet Banking in Europe: a comparative analysis," IREA Working Papers 200811, University of Barcelona, Research Institute of Applied Economics, revised Sep 2008.
    12. Irina Japparova & Ramona Rupeika-Apoga, 2017. "Banking Business Models of the Digital Future: The Case of Latvia," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 846-860.
    13. Indjikian, Rouben & Siegel, Donald S., 2005. "The Impact of Investment in IT on Economic Performance: Implications for Developing Countries," World Development, Elsevier, vol. 33(5), pages 681-700, May.
    14. Ignacio Hernando & Soledad Núñez, 2004. "The contribution of ICT to economic activity: a growth accounting exercise with Spanish firm-level data," Investigaciones Economicas, Fundación SEPI, vol. 28(2), pages 315-348, May.
    15. Ahsan, Mohammad Kamrul, 2016. "Measuring Financial Performance Based on CAMEL: A Study on Selected Islamic Banks in Bangladesh," Asian Business Review, Asian Business Consortium, vol. 6(1), pages 47-56.
    16. Simon Grima & Inna Romanova & Frank Bezzina & Frank Chetcuti Dimech, 2016. "Alternative Investment Fund Managers Directive and its Impact on Malta’s Financial Service Industry," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 70-85.
    17. M. Hanias & P. Curtis & E. Thalassinos, 2012. "Time Series Prediction with Neural Networks for the Athens Stock Exchange Indicator," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 23-32.
    18. Ercan Özen & Özdemir Letife & Simon Grima & Frank Bezzina, 2014. "Investigating Causality Effects in Return Volatility among Five Major Futures Markets in European Countries with a Mediterranean Connection," Journal of Financial Management, Markets and Institutions, Società editrice il Mulino, issue 2, pages 207-220, December.
    19. Mansour Dehghan & Mahdi Ghafoorifard & Babak Shamsi & Seyed hamid Seyed heydari, 2015. "The Effect Of Implementing Core Banking Services On Profitability. Case Study: All Branches Of A Private Bank In Mashhad," Studies and Scientific Researches. Economics Edition, "Vasile Alecsandri" University of Bacau, Faculty of Economic Sciences, issue 21.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Okeke, Clement, 2024. "Effect of Information and Communication Technology (ICT) on Financial Performance of Listed Consumer Goods Firms in Nigeria," MPRA Paper 121293, University Library of Munich, Germany.
    2. Kuldeep Singh & Sam Goundar & Preetha Chandran & Amit Kumar Agrawal & Nimisha Singh & Prasanna Kolar, 2023. "Digital Banking through the Uncertain COVID Period: A Panel Data Study," JRFM, MDPI, vol. 16(5), pages 1-18, April.
    3. Le Hoang Vinh & Ngo Van Toan & Pham Le Quang, 2023. "Non-Linear Impact of ICT on Profitability of Commercial Banks in Vietnam," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 42-53.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:ers:journl:v:volumexxi:y:2018:i:issue4:p:435-458 is not listed on IDEAS
    2. Rangga Handika & Sania Ashraf, 2018. "Financialized Commodities and Stock Indices Volatilities," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 153-164.
    3. Vitaly F. Ershov, 2018. "Russian Banking in the Global Economic System: Historical Experience of Integration (1991-2017)," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 512-523.
    4. repec:ers:journl:v:volumexxi:y:2018:i:issue4:p:512-523 is not listed on IDEAS
    5. Esteban Miguélez & Jonathan Spiteri & Simon Grima, 2019. "Establishing the Contributing Factors to the Resurrection of PIIGS Banks Following the Crisis: A Panel Data Analysis," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 3-34.
    6. Md. Imran Hossain, 2021. "Effects of E-Banking Adoption on the Financial Performance of State-Owned Commercial Banks in Bangladesh," Information Resources Management Journal (IRMJ), IGI Global, vol. 34(4), pages 1-20, October.
    7. S.S. Rahi AL-Hisnawy & A.A. Shareef Al-Morshed, 2018. "Predicting the Market Value of Shares Using Financial Data: A Study from the Iraqi Stock Exchange," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 754-766.
    8. Md. Imran Hossain, 2021. "Effects of E-Banking Adoption on the Financial Performance of State-Owned Commercial Banks in Bangladesh," Information Resources Management Journal (IRMJ), IGI Global, vol. 34(4), pages 93-112, October.
    9. A.B. Tastulekova & R.K. Satova & U.Zh. Shalbolova, 2018. "Business Valuation and Equity Management When Entering the IPO Market," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 875-886.
    10. Shamima Islam & Rakibul Islam, 2022. "Measurement of Financial Performance of Rupali Bank Limited," International Journal of Science and Business, IJSAB International, vol. 15(1), pages 45-56.
    11. Lavinia Mihaela Gutu, 2014. "The impact of Internet technology on the Romanian banks performance," Proceedings of International Academic Conferences 0702397, International Institute of Social and Economic Sciences.
    12. Eva Cipovová & Petra Jílková, 2018. "Loan Product Policy and Rentability Based on Interest Rates in Czech Republic," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 575-585.
    13. T.V. Shatkovskaya & A.B. Shumilina & G.G. Nebratenko & Ju.I. Isakova & E.Yu. Sapozhnikova, 2018. "Impact of Technological Blockchain Paradigm on the Movement of Intellectual Property in the Digital Space," European Research Studies Journal, European Research Studies Journal, vol. 0(Special1), pages 397-406.
    14. repec:ers:journl:v:vi:y:2018:i:3:p:3-20 is not listed on IDEAS
    15. Aleksandra Bradic Martinovic & Aleksandar Zdravkovic, 2012. "Information and Communication Techologies in Basis for the Improvement of Companies Performance in Serbia," Book Chapters, in: João Sousa Andrade & Marta C. N. Simões & Ivan Stosic & Dejan Eric & Hasan Hanic (ed.), Managing Structural Changes - Trends and Requirements, edition 1, volume 1, chapter 33, pages 573-588, Institute of Economic Sciences.
    16. repec:ers:journl:v:volumevi:y:2018:i:issue3:p:3-20 is not listed on IDEAS
    17. repec:ers:journl:v:special_issue:y:2018:i:1:p:397-406 is not listed on IDEAS
    18. Tariq Abbasi & Hans Weigand, 2017. "The Impact of Digital Financial Services on Firm's Performance: a Literature Review," Papers 1705.10294, arXiv.org.
    19. R.M. Mahboub, 2018. "The Impact of Social Media Usage on Performance of the Banking Sector in Middle East and North Africa Countries," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 3-20.
    20. Bagella, Michele & Becchetti, Leonardo & Hasan, Iftekhar, 2004. "The anticipated and concurring effects of the EMU: exchange rate volatility, institutions and growth," Journal of International Money and Finance, Elsevier, vol. 23(7-8), pages 1053-1080.
    21. Sergey Valery Samoilenko, 2013. "Investigating factors associated with the spillover effect of investments in telecoms: Do some transition economies pay too much for too little?," Information Technology for Development, Taylor & Francis Journals, vol. 19(1), pages 40-61, January.
    22. Donal G. MCKILLOP & Barry QUINN, 2015. "Web Adoption By Irish Credit Unions: Performance Implications," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(3), pages 421-443, September.
    23. Shaohua Yang & Zeyun Li & Yaxin Ma & Xingxing Chen, 2018. "Does Electronic Banking Really Improve Bank Performance? Evidence in China," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(2), pages 82-94, February.
    24. Fındık, Derya & Tansel, Aysit, 2013. "Intangible investment and technical efficiency: The case of software-intensive manufacturing firms in Turkey," MPRA Paper 66165, University Library of Munich, Germany, revised 05 Aug 2014.
    25. Juan Jiménez & Jordi Perdiguero, 2012. "Does Rigidity of Prices Hide Collusion?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 41(3), pages 223-248, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xxi:y:2018:i:4:p:435-458. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.