Browse > Article
http://dx.doi.org/10.7838/jsebs.2013.18.4.169

Time Series Analysis on the Endogeneity between Quality of Internet Banking System and Business Performances of Banks  

Shim, Seonyoung (Department of Business Administration, Sungshin Women's University)
Publication Information
The Journal of Society for e-Business Studies / v.18, no.4, 2013 , pp. 169-193 More about this Journal
Abstract
This study investigates time series data on internet banking systems and business performances for 5 large-scale banks : Kookmin, Woori, Hana, City, Shinhan. These banks have the common features that they merged with other banks around 2000, hence they experienced massive IS integration between banks. This study adopted VAR and VECM for identifying Granger causality between the quality of internet banking systems and the performances of banks(operating revenue and cost). The main results are as follows. First, internet banking system impacts positively on the revenues as well as costs of banks. Second, the improvement of internet banking system is instigated by cost part more than revenue part. Hence, the results imply that banks tries to reduce operating costs via internet banking systems, however the systems rather increased the costs of banks, although the systems increased operating revenues of banks too.
Keywords
Internet Banking System; Vector Auto Regression; Vector Error Correction Model; Time Series Data Analysis;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
연도 인용수 순위
1 Electronic Times "Banks invest money for Online Entry Competition," 2013. http://www.etnews.com/news/economy/ finance/2715895_1492.html.
2 Furst, K., William W. L., and Nolle, D. "Internet Banking : Developments and Prospects," Center for Information Policy Research, Harvard University, 2002.
3 Granger, C., "Developments in the Study of Cointegrated Economic Variables," Oxford Bulletin of Economics and Statisitics, Vol. 48, No. 3, pp. 213-222, 1986.
4 Gujarati, D., Porter, D., "Basic Economeritucs," McGraw-Hill/Irwin, 5th ed. 2008.
5 Haimowitz, J. H., "Has the Surge in Computer Spending Fundamentally Changed the Economy?," FRBKC, Economic Review, Vol. 83, No. 2, pp. 27-42, 1998.
6 Hamilton, J. D., "Time Series Analysis," Princeton Univerisity Press, Princeton. 1994.
7 Jang, G., "Empirical Application of the Automobile Choice Model by Accounting for Price Endogeneity," Journal of Korean Marketing Association, Vol. 25, No. 3, pp. 51-69, 2010.
8 Jeon, Y., Yoo, T., "Examination of the Validity of the Hypothesis that the Natural Rate of Economic Growth," Industrial Economics Studies, Vol. 24, No. 1, pp. 187-201, 2011.
9 Johansen, S., "Likelihood-Based Inference in Cointegrated Vector Autoregressive Models," Oxford : Oxford University Press, 1995.
10 Jun, M., Cai, S., "The key determinants of Internet banking service quality : a content analysis," The International Journal of Bank Marketing, Vol. 19, No. 7, pp. 276-291, 2001.   DOI   ScienceOn
11 Jung, G., Lee, C., "Relationship between ODA and Economic Growth through Panel Time-Series Analysis," The Journal of Korean Public Policy, Vol. 13, No. 3, pp. 59-86, 2011.
12 Jung, H., Kim, S., "An Empirical Study on Development of IS Evaluation Indices : In Case of Public Sectors," Journal of the Korean Operations Research and Management Science Society, Vol. 28, No. 4, pp. 155-189, 2003.   과학기술학회마을
13 Kang, I., Song, J., "Information Technology Investments, Productivity and Business Performance of Domestic Banks," The Korean Journal of Economic Studies, Vol. 47, No. 3, pp. 65-98, 1999.
14 Kim, G., Cho, K., "Effect of Information Infrastructure Level on Banks Business Performance," Korean Management Review Vol. 26, No. 3, pp. 475-491, 1997.
15 Kim, H., Choi, M., "The Effect of Corporate Governance on Book-Tax Differences," Korean International Accounting Review, Vol. 32, pp. 79-106, 2010.
16 Kim, H., Kim, J., Seol, Y., "A Study on the Relationship Analysis Between Customers' Satisfaction of Internet Banking and Profit Ratio Indices," Korean Business Review, Vol. 2, No. 1, pp. 47-73, 2009.
17 Kim, H., Park, C., "The Impact of Internet Banking on the Performance of the Korean Banking Industry : An Empirical Analysis," KDI Policy Studies, Vol. 25, No. 2, pp. 91-135, 2003.
18 Kim, P., Park, Y., "Effect of e-Service Quality on Shopping Value, Shopping Satisfaction an Customer Voluntary e- Performance," Internet Electronic Commerce Studies, Vol. 6, No. 1, pp. 23-50, 2006.
19 Kim, W., "The Effect of Global Macroeconomic Shocks on Korea's IT Exports," The e-Business Studies, Vol. 10, No. 2, pp. 139-162, 2009.   DOI
20 Kreibel, C. A., Raviv, A., "An Economics Approach to Modeling the Productivity of Computer Systems," Management Science, Vol. 26, No. 3, pp. 297-311, 1980.   DOI   ScienceOn
21 Lee, G., Kim, H., "The Analysis of Effects of Foreign Direct Investments on Trade in IT Industries," Economics Studies, Vol. 28, No. 1, pp. 47-68, 2010.
22 News Tomato, "'Smart Financing' is the Answer. Innovation Changes the Financial Market," 2013. http://www.newstomato.com/ReadNews. aspx?no = 362164.
23 Lee, G., Kim, J., Yang, D., "The Association Between Corporate Social Responsibility and Firm Value," Accounting Information Review, Vol. 30, No. 4, pp. 115-145, 2012.
24 Loveman, G. W., "An Assessment of the Productivity Impact on Information Technologies," in Allen, T. J. and Scott- Morton, M. S. (Eds), Information Technology and the Corporation of the 1990s : Research Studies, Information Technology Press, Cambridge, MA, pp. 84-110. 1994.
25 Maddala, G., "Limited-Dependent and Qualitative variable in Econometrics New York," NY : Cambridge University Press. 1980.
26 Pitt, L. F., Watson, R. T., Kavan, C. B., "Service Quality : A Measure of Information Systems Effectiveness," MIS Quarterly, Vol. 19, No. 2, pp. 173-187, 1995.   DOI   ScienceOn
27 Rainer, R. K., Watson, H. J., "The Keys to Executive Information Systems Success," Journal of Management Informa tion Systems, Vol. 12, No. 2, pp. 83-98, 1995.
28 Seddon, P. B., "A respecification and extension of the DeLone and McLean model of IS success," Information Systems Research, Vol. 8, No. 3, pp. 240-253, 1997.   DOI   ScienceOn
29 Seo, B., "The Impact of Perceive Security Control on the Acceptance of Internet Banking," The Journal of Society for e-Business Studies, Vol. 11, No. 1, pp. 1-25, 2006.
30 Shim, S., Chae, M., Lee, B., "Empirical Analysis of Risk-Taking Behavior in IT Platform Migration decisions," Computers in Human Behavior, Vol. 25, pp. 1290-1305, 2009.   DOI   ScienceOn
31 Sims, C., "Macroeconomics and Reality," Econometrica, Vol. 48, 1980.
32 Won, Y., Hsiao, F., Yang, D. Y., "FDI inflows, exports and economic growth in first and second generation ANIEs : Panel data causality analyses," Trade Working Papers No. 21939, East Asian Bureau of Economic Research, 2008.
33 Strassman, P. A., "Computers Have Yet to Make Companies More Productive," Computerworld Vol. 15, 1997.
34 Swanson, E. B., "Management Information Systems : Appreciation and Involvement," Management Science, Vol. 21, No. 2, pp. 178-188, 1974.   DOI   ScienceOn
35 Tirunillai, S., Tellis, G., "Does Chatter Really Matter? Dynamics of User-Generated Content and Stock Performance," Marketing Science, Vol. 31, No. 2, pp. 198-215, 2012.   DOI
36 Yoo, B., "Outward Foreign Direct Investment and Export : A Multivariate Cointegrating Approach," Journal of Korean Economic Studies, Vol. 10, pp. 191-207.
37 Choe, J., "Excel and Stata based Economics Data Analysis," Ulsan University Press, 2011.
38 Ahituv, N., "A Systematic Approach Toward Assessing the Value of an Information System," MIS Quarterly, Vol. 4, No. 4, pp. 61-75, 1980.   DOI   ScienceOn
39 Alpar, P., M. Kim, "A Microeconomic Approach to the Measurement of Information Technology Value," Journal of Management Information Systems, Vol. 7, No. 2, pp. 55-69, 1990.   DOI   ScienceOn
40 An, J., Choi, C., "Do Increases in IT Investments Improve Bank Profitability," Economics Studies, Vol. 22, No. 4, 2004.
41 Choe, Y., "An Empirical analysis on the Relevance of Main Macroeconomic Factors and KOSPI," Korean Management Review, Vol. 28, No. 3, pp. 589-608, 1999.
42 Dasgupta, S., Joseph, S., and Talluri, S. "Influence of Technology Investment on Firm Productivity : a Cross-Sectional Study," Logistics Information Management, Vol. 12, No. 1/2, 1999.
43 DeLone, W. H., McLean, E. R., "Information Systmes Success : The Quest for th e Dependent Variable," Information Systems Research, Vol. 3, No. 1, pp. 60-95, 1992.   DOI
44 DeLone, W. H., McLean, E. R., "The Delone and McLean Model of Information System Success : A Ten-Year Update," Journal of Management Information Systems, Vol. 19, No. 4, pp. 9-30, 2003.
45 DeYoung, R., "Learning-by-Doing, Scale Efficiencies, and Financial Performance at Internet-only Banks," Federal Reserve Bank of Chicago Working Paper, No. 2001-06, 2002.
46 DigitalDaily "[Financial IT Integration(1)] Ignition of 'Mega Bank' Scenario … IT Rear Blast?," 2013. http://www.ddaily.co.kr/news/news_ view.php?uid = 105448.