The impact of information technology investment announcements on the market value of the Japanese regional banks

Fumiko Takeda, Koichi Takeda, Toshihiko Takemura, Ryota Ueda

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)

Abstract

The business conditions surrounding Japanese regional banks have deteriorated for decades amid continuing ultra-low interest rates. We examine stock price reactions of regional banks to information technology (IT) investment announcements and analyze the factors that affect market responses. We provide three main findings. First, regional banks’ stock prices as a whole do not respond significantly to IT investment announcements. Second, stock price responses to IT investment announcements are more positively correlated with the regional banks’ size and with the individual shareholders’ ratio. Third, regional banks’ stock prices respond more negatively when there's news regarding equity investments to FinTech companies.

Original languageEnglish
Article number101811
JournalFinance Research Letters
Volume41
DOIs
Publication statusPublished - 2021 Jul
Externally publishedYes

Keywords

  • Bank
  • Event study
  • FinTech
  • M&A
  • Stock price

ASJC Scopus subject areas

  • Finance

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