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Number of ATMs, IT investments, bank profitability and efficiency in Greece

Giordani, G. and Floros, C. (2014) Number of ATMs, IT investments, bank profitability and efficiency in Greece. Global Business and Economics Review. 17(2), pp. 217-235. 1097-4954.

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Giordani_Georgia_and_Floros_Christos_IN_2015_Number_of_ATMs_IT_investments_bank_profitability_and_efficiency_in_Greece.pdf - Accepted Version
Information
Abstract:
This paper investigates the effect of automated teller machines (ATMs), information technology (IT) investments and other determinants on the efficiency and profitability of Greek commercial banks. Following the two–step procedure: 1) efficiency is derived via the non–parametric data envelopment analysis (DEA) technique under the variable returns to scale (VRS) assumption; 2) efficiency scores are linked to a series of determinants of bank efficiency using a Tobit regression model. We find that profitability (ROAA and ROAE), ATMs and capitalisation show a negative impact on the efficiency of Greek banks. We also report that banks' size, capitalisation, IT investments and ATMs do not have any effect on the ROAA or the ROAE but they have a positive effect on the fees and commissions. However, we find that ATMs have a negative effect on the net interest income.
Uncontrolled Keywords:
banking industry, automated teller machines, ATMs, bank efficieny, bank profitability, IT investment, information technology, Greece, non-parametric DEA, data envelopment analysis, capatilism, ROAA, ROAE, fees, commissions, net interest income
Creators:
Giordani, G. and Floros, C.
Faculties, Divisions and Institutes:
Faculties > Faculty of Business & Law > Economics, Intl Relations & Development
Date:
19 January 2014
Date Type:
Acceptance
Page Range:
pp. 217-235
Journal or Publication Title:
Global Business and Economics Review
Volume:
17
Number:
2
Number of Pages:
19
Language:
English
DOI:
10.1504/GBER.2015.068571
ISSN:
1097-4954
Status:
Published / Disseminated
Refereed:
Yes
Related URLs:
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