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dc.contributor.authorNoth, Felixen_US
dc.contributor.authorSlotty, Constantinen_US
dc.contributor.authorHackethal, Andreasen_US
dc.description.abstractThis paper investigates the impact of IT standardization on bank performance based on a panel of 457 German savings banks over the period from 1996 to 2006. We measure IT standardization as the fraction of IT expenses for centralized services over banks' total IT expenses. Bank efficiency, in turn, is measured by traditional accounting performance indicators as well as by cost and profit efficiencies that are estimated by a stochastic frontier approach. Our results suggest that IT standardization is conducive to cost efficiency. The relation is positive and robust for small and medium-sized banks but vanishes for very large banks. Furthermore, our study confirms the often cited computer paradox by showing that total IT expenditures negatively impact cost efficiency and have no influence on bank profits. To the best of our knowledge, this paper is first to empirically explore whether IT standardization enhances efficiency by employing genuine data of banks' IT expenditures.en_US
dc.publisherUniv., Fachbereich Wirtschaftswiss. Frankfurt am Mainen_US
dc.relation.ispartofseriesWorking paper series // Johann-Wolfgang-Goethe-Universität Frankfurt am Main, Fachbereich Wirtschaftswissenschaften Finance & accounting 204en_US
dc.subject.keywordIT standardizationen_US
dc.subject.keywordcost and profit efficiencyen_US
dc.subject.keywordsavings banksen_US
dc.subject.stwWirtschaftliche Effizienzen_US
dc.titleDoes IT standardization help to boost cost and profit efficiency? Empirical evidence from German savings banksen_US
dc.typeWorking Paperen_US
Appears in Collections:Working Paper Series: Finance and Accounting, Universität Frankfurt a. M.

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