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臺大管理論叢
第
27
卷第
2
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Table 1 An Example of IT Expenditures Disclosed by 10-K Reports
THE SAVANNAH BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income
($ in thousands, except per-share data)
For the Years Ended December 31
2007
2006
2005
Non-interest expense
Salaries and employee benefits
11,846
10,852
9,530
Occupancy and equipment
3,294
2,920
2,199
Information technology
1,616
1,525
1,244
Other operating expense
4,383
4,656
3,673
Total non-interest expense
21,139
19,953
16,646
3.2 Regression Models and Variable Definitions
Our first hypothesis aims to investigate the value relevance of IT expenditures. There
are a number of ways to define value relevance. For example, information is value-relevant
if it aids in the prediction of variables used in valuing the firm, or it correlates with market
measures of firm values. We operationalize value relevance as the ability of financial
information to explain market measures, consistent with prior research (Francis and
Schipper, 1999; Barth, Beaver, and Landsman, 1998; Chambers, Jennings, and Thompson,
1999). This definition assumes that market values reflect all public, value-relevant
information and that the usefulness of accounting data is in its ability to summarize this
information. Following numerous accounting literature, this study uses the model based on
the work of Ohlson (1995), wherein the market value of equity can be expressed as a
function of accounting data with relatively realistic assumptions.
7
MV
it
= b
0
+ b
1
BV
it
+ b
2
NI
it
+ b
3
IT
it
+ ε
it
,
Model 1.1
MV
it
= b
0
+ b
1
BV
it
+ b
2
BNI
it
+ b
3
IT
it
+ ε
it
,
Model 1.2
where:
MV
it
= Market value of bank
i
at the end of year
t
(Compustat Annual data
MKVALT
)
BV
it
= Book value of bank
i
at the end of year
t
, i.e., total assets less total liabilities
(Compustat Annual data
AT
- Compustat Annual data
LT
)
7 To check the robustness, we also use the market value at the end of first quarter of bank
i
as the dependent
variable to ensure that the annual financial data is available to the market. All results are unaffected by
such adjustment.