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臺大管理論叢
第
27
卷第
2
期
49
ROA is the dependent variable, the coefficient of IT intensity (ITD
it
) is positive (0.004) and
significant (
p
= 0.000), while that of the squared term (ITD
it
× ITD
it
) is negative (-0.061) and
marginally significant (
p
= 0.090). In Column (2) where the market value serves as the
dependent variable, the coefficient of IT expenditure (IT
it
) is positive (2.134) and significant
(
p
= 0.000), while that of the squared term (IT
it
× IT
it
) is negative (-1.009) and marginally
significant (
p
= 0.094). In brief, controlling for the effect of non-linearity, IT expenditure and
its intensity still significantly and positively relate to value creation and profitability.
Though, the negative coefficients of the squared IT terms also suggest that extremely high IT
expenditures may be risky, and hence impair the banks’ profitability. While the underlying
reason is unclear, it may be worth researching for future studies.
Lastly, to further ascertain whether the economic benefits of IT will be gradually
realized over time, we also use mean (ROA
t+1
, ROA
t+2
), mean (ROA
t+1
, ROA
t+2
, ROA
t+3
),
mean (ROA
t+1
, ROA
t+2
, ROA
t+3
, ROA
t+4
), and mean (ROA
t+1
, ROA
t+2
, ROA
t+3
, ROA
t+4
, ROA
t+5
)
as the dependent variables, respectively. Results are presented in Table 8, which show that all
the coefficients of ITt remain significantly positive (all
p
< 0.05), and hence, the conjecture
that IT expenditure contributes to long-term economic benefits is further supported.
Table 6 Robustness Checks for the Impact of IT Intensity on Earnings Persistence
Profitability measure =
(1) ROA
(2) ROE
(3) NI
Dependent Var.
ROA
i,t+1
ROE
i,t+1
NI
i,t+1
ITD
it
× (Profitability measure)
it
0.006***
(0.000)
0.067***
(0.001)
0.006***
(0.000)
ITD
it
-0.238
(0.199)
-0.534
(0.181)
-0.211
(0.191)
(Profitability measure)
it
0.442***
(0.000)
0.801***
(0.000)
0.631***
(0.000)
LNMV
it
0.002***
(0.000)
0.020***
(0.000)
0.002***
(0.000)
DER
it
-0.069***
(0.000)
-1.656***
(0.000)
-0.065***
(0.000)
Intercept
0.051***
(0.000)
1.334***
(0.000)
-0.049***
(0.001)
Adj-R
2
38.77%
47.32%
38.99%
No. of obs.
2,952
2,952
2,952
a: This table reports the regression results for testing the impact of IT intensity on banks’ profitability
and earnings persistence after controlling for double-clustered standard errors. Refer to Tables 3
and 4 for variable definitions.
b: *:
p
< 0.10; **:
p
< 0.05; ***:
p
< 0.01.