Hellenic Open University Conferences, International Conference on Business & Economics of the Hellenic Open University 2017

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Evaluation of e-banking in Europe: development of an evaluation index and cross-sectional analysis
Dimitrios Arsenis, Andreas Andrikopoulos

##manager.scheduler.building##: Titania
##manager.scheduler.room##: Platon
Date: 2017-04-22 11:00 AM – 01:00 PM
Last modified: 2017-04-11

Abstract


Introduction: E-banking has revolutionized the field of banking services by providing customer service without the need of physical presence. Most Greek banks offer online banking services in various forms (such as Internet-banking or mobile-banking). However, the challenge is still pending: to determine whether and to what extent the e-banking services is related to the profitability of banks.

Purpose: We measure the quality and disclosure of e-banking services. We investigate the effect of leverage, size and profitability on the use and development of e-banking. We examine three hypotheses: whether the size of a bank is positively associated with the degree of information disclosure through the e-banking website, whether the profitability of a bank is positively associated with the degree of information disclosure through the e-banking website and whether a bank’s leverage is negatively related to the degree of information disclosure through the e-banking website.

Sample-Methodology: The sample includes 60 banks that operate in Europe and have accessible website and e-banking services. We develop a performance index to assess the quality and disclosure of e-banking services. Regression analysis is employed to examine the effect of profitability, leverage and size on e-banking performance and disclosure.

Results: We document a positive of effect of bank size on e-banking performance and disclosure as well as a negative relationship between leverage and e-banking disclosure..

Conclusions: We document substantial differences across banks' profiles depending on the electronic banking services offered, where the banks with better e-banking services are more efficient, employ assets of higher quality and successfully manage the costs of financing and the costs of investment expenditure.


Keywords


e-banking; size; leverage; profitability; performance measurement

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