Electronic Markets

, Volume 22, Issue 4, pp 243–254 | Cite as

Performance implications of internet channels in financial services: A comprehensive perspective

Special Theme
First Online:
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Accepted:

Abstract

Advances in information technology (IT) have forced financial services firms to explore new organizational forms and deliver service innovation. Given the obvious differences in the business model in which the financial services sector provides online services, it is natural to ask whether the emergence of Internet channels leads to superior achievement. Using a sample of twenty-four Taiwanese publicly traded financial services firms from 1997 to 2003, this empirical study attempts to assess the Internet channel’s effect on firm performance by means of applying event study methodology and data envelopment analysis. Results show that the magnitudes of average abnormal returns are uniformly positive and increase the operating efficiency of firms following announcements via Internet channels. This work therefore concludes that Internet channels have positive influences on firm performance.

Keywords

Event study Internet channels Data Envelopment Analysis (DEA) Performance implications 
JEL classification M31—Marketing L81—Retail and Wholesale Trade; e-Commerce 
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Notes

Acknowledgements

This research project was sponsored by the Taiwan National Science Council (NSC 100-2410-H-126-006-) and supported in part by the School of Management, Providence University.

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Copyright information

© Institute of Information Management, University of St. Gallen 2012

Authors and Affiliations

  1. 1.Providence UniversityTaichung CityTaiwan

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