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

Fumiko Takeda, Koichi Takeda, Toshihiko Takemura and Ryota Ueda

Finance Research Letters, 2021, vol. 41, issue C

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.

Keywords: FinTech; Bank; M&A; Stock price; Event study (search for similar items in EconPapers)
JEL-codes: G21 G22 G23 G24 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:41:y:2021:i:c:s1544612320316251

DOI: 10.1016/j.frl.2020.101811

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