The Impact of Technology Expenditure on the Commercial Banks’ Profitability in Canada

Zijun Lin () and Yunan Wang
Additional contact information
Zijun Lin: New York University, Tandon School of Engineering
Yunan Wang: MINZU UNIVERSITY

A chapter in Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022), 2022, pp 1419-1424 from Springer

Abstract: Abstract The growing cyber threat has created an uncontrollable financial mess for the global banking industry. This paper presents a case study that reviews Canada's largest financial data breach and investigates the spillover effects of cyber attack. To test the cyber investment efficiency of banks in Canada, we collect technology-related expenditures and profitability ratios from six Canadian central banks’ annual reports. Moreover, we use a multiple linear regression model to examine the impact of technology spending on the financial performance of Canadian banks. The results show that technology expenditure has a significant negative impact on the financial performance of banks. However, we may find different results in future studies that can include more banks in the sample and obtain more comprehensive data sources.

Keywords: Cyber security; Data breach; Bank performance; Profitability; Technology expenses; Multiple linear regression (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-036-7_210

Ordering information: This item can be ordered from
http://www.springer.com/9789464630367

DOI: 10.2991/978-94-6463-036-7_210

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().