Commercial bank performance in digital era : evidence from Malaysia

Bank as a financial institution play a wider role in Malaysia. In order to ensure connectivity, the banking sector explore into technology as market demand increase. Early of year 2000, the bank started to develop new banking instruments with new technology innovation and connectivity. The aim of th...

Full description

Saved in:

Bibliographic Details
Main Author:	Dharvintharan, Konasilan
Format:	Thesis
Language:	eng eng
Published:	2018
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/7745/1/Depositpermission_s822845.pdf https://etd.uum.edu.my/7745/2/s822845_01.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-uum-etd.7745
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Murugiah, Logasvathi
topic	HG Finance
spellingShingle	HG Finance Dharvintharan, Konasilan Commercial bank performance in digital era : evidence from Malaysia
description	Bank as a financial institution play a wider role in Malaysia. In order to ensure connectivity, the banking sector explore into technology as market demand increase. Early of year 2000, the bank started to develop new banking instruments with new technology innovation and connectivity. The aim of the study is to investigate the bank internal factors relationship on Malaysian commercial banking sector performance. Other than that, it is to analyse the connection of macroeconomic factors towards Malaysian commercial banking performance and to examine the relationship of technology on Malaysian commercial banking performance. Through secondary data collection method, 8 Malaysia local bank been used as sample for this study. This study employed multiple regression analysis to identify the determinates of bank performance. The result shows that bank internal factor had significant correlation towards Malaysia bank performance. It indicates that bank size, credit risk and capital adequacy play significate role in banks. Moreover, the finding also shows that there is significate relationship between technology and bank performance. This signs that bank certainly affected by technology innovation which indicates bank has to make clearer strategic plan to sustain in this sector and improve their performance. On the other hand, there were no significate found among macroeconomic towards bank performance.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Dharvintharan, Konasilan
author_facet	Dharvintharan, Konasilan
author_sort	Dharvintharan, Konasilan
title	Commercial bank performance in digital era : evidence from Malaysia
title_short	Commercial bank performance in digital era : evidence from Malaysia
title_full	Commercial bank performance in digital era : evidence from Malaysia
title_fullStr	Commercial bank performance in digital era : evidence from Malaysia
title_full_unstemmed	Commercial bank performance in digital era : evidence from Malaysia
title_sort	commercial bank performance in digital era : evidence from malaysia
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2018
url	https://etd.uum.edu.my/7745/1/Depositpermission_s822845.pdf https://etd.uum.edu.my/7745/2/s822845_01.pdf
_version_	1747828258646261760
spelling	my-uum-etd.77452021-08-09T06:46:06Z Commercial bank performance in digital era : evidence from Malaysia 2018 Dharvintharan, Konasilan Murugiah, Logasvathi School of Economics, Finance & Banking School of Economics, Finance & Banking HG Finance Bank as a financial institution play a wider role in Malaysia. In order to ensure connectivity, the banking sector explore into technology as market demand increase. Early of year 2000, the bank started to develop new banking instruments with new technology innovation and connectivity. The aim of the study is to investigate the bank internal factors relationship on Malaysian commercial banking sector performance. Other than that, it is to analyse the connection of macroeconomic factors towards Malaysian commercial banking performance and to examine the relationship of technology on Malaysian commercial banking performance. Through secondary data collection method, 8 Malaysia local bank been used as sample for this study. This study employed multiple regression analysis to identify the determinates of bank performance. The result shows that bank internal factor had significant correlation towards Malaysia bank performance. It indicates that bank size, credit risk and capital adequacy play significate role in banks. Moreover, the finding also shows that there is significate relationship between technology and bank performance. This signs that bank certainly affected by technology innovation which indicates bank has to make clearer strategic plan to sustain in this sector and improve their performance. On the other hand, there were no significate found among macroeconomic towards bank performance. 2018 Thesis https://etd.uum.edu.my/7745/ https://etd.uum.edu.my/7745/1/Depositpermission_s822845.pdf text eng public https://etd.uum.edu.my/7745/2/s822845_01.pdf text eng public https://sierra.uum.edu.my/record=b1699290~S1 masters masters Universiti Utara Malaysia Abaenewe, Z., Ogbulu, O., & Ndugbu, M. (2013). Electronic banking and bank performance in Nigeria. West African Journal of Industrial …, 6(1), 171–187. Abdullah, M. N., Parvez, K., & Ayreen, S. (2014). Bank Specific, Industry Specific and Macroeconomic Determinants of Commercial Bank Profitability: A Case of Bangladesh. World Journal of Social Sciences, 4(3), 82–96. Abiola, I., & Olausi, A. (2014). The Impact of Credit Risk Management on the Commercial Banks Performance in Nigeria. International Journal of Management and Sustainability, 3(5), 295–306. https://doi.org/10.3923/pjssci.2012.139.146 Akhisar, İ., Tunay, K. B., & Tunay, N. (2015). The Effects of Innovations on Bank Performance: The Case of Electronic Banking Services. Procedia - Social and Behavioral Sciences, 195, 369–375. https://doi.org/10.1016/j.sbspro.2015.06.336 Alexiou, C., & Vogiazas, S. D. (2009). Determinants of bank profitability : Evidence from the Greek banking sector. Economic Annals, 54(182). https://doi.org/10.2298/EKA0982093A Ali, Q., Usman, M., & Gill, T. (2018). Impact of Macroeconomic Variables on Islamic Banks Profitability. Journal of Accounting and Applied Business Research, 1, 1–16. Alper, D., & Anbar, A. (2011). Bank Specific and Macroeconomic Determinants of Commercial Bank Profitability : Empirical Evidence from, 2(2), 139–152. Aremu, M. A., Christopher, I., & Mudashiru, M. A. (2013). Determinants of Bank’s Profitability in Developing Economy. Interdisciplinary Journal of Contemporary Research in Business, 4(9), 155–181. Retrieved from http://search.proquest.com/openview/6c437f80 d7c5dc070df69ccc7ace926a/1?pq-origsite= gscholar%5Cnhttp://journal-archieves27.webs. com/155-181.pdf Barnor, C., & Odonkor, T. (2012). Capital adequacy and the performance of Ghanaian banks. Journal of Business Research, 6(1–2), 105–117. Beccalli, E. (2007). Does IT investment improve bank performance? Evidence from Europe. Journal of Banking and Finance, 31(7), 2205–2230. https://doi.org/10.1016/j.jbankfin.2006.10.022 Berger, A. N. (1995). The Relationship between Capital and Earnings in Banking. Journal of Money, Credit and Banking, 27(2), 432–456. Binuyo, A. O., & Aregbeshola, R. A. (2014). The impact of information and communication technology ( ICT ) on commercial bank performance : evidence from South Africa. Problems and Perspectives in Management, 12(3). Chai, B. B.-H., Tan, P. S., & Goh, T. S. (2016). Banking Services that Influence the Bank Performance. Procedia - Social and Behavioral Sciences, 224 (August 2015), 401–407. https://doi.org/10.1016/j.sbspro.2016.05.405 Combey, A., & Togbenou, A. (2017). The Bank Sector Performance and Macroeconomics Environment: Empirical Evidence in Togo. International Journal of Economics and Finance, 9(2), 180. https://doi.org/10.5539/ijef.v9n2p180 Davis, F. D. (1989). Perceived Usefulness, Perceived Ease of Use , and User Acceptance of lnformation Technology. MIS Quarterly, 13(3), 319–340. https://doi.org/10.2307/249008 DeYoung, R., Lang, W. W., & Nolle, D. L. (2007). How the Internet affects output and performance at community banks. Journal of Banking and Finance, 31(4), 1033–1060. https://doi.org/10.1016/j.jbankfin.2006.10.003 Edirisuriya, P., Gunasekarage, A., & Dempsey, M. (2015). Australian specific bank features and the impact of income diversification on bank performance and risk. Australian Economic Papers, 54(2), 63–87. https://doi.org/10.1111/1467-8454.12043 Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics (5th Editio). New York: McGraw-Hill. Gutu, L. M. (2014). The impact of internet technology on the Romanian banks performance. 12th Internetional Academic Conference, (September), 495–501. Hailegebreal, D. (2016). Macroeconomic and Firm Specific Determinants of Profitability of Insurance Industry in Ethiopia, 16(7). Hair, J. F., Black, W. C., & Anderson, R. E. (1998). Multivariate Data Analysis (5th Editio). London: Prentice Hall. Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate Data Analysis. Pearson Education Limited (7th Editio, Vol. 259). England: Pearson Education Limited. https://doi.org/10.1038/259433b0 Hossein. (2013). Consideration the effect of E-Banking on Bank Profitability; Case Study Selected Asian Countries. Journal of Economics & Sustainable Development, 4(11), 2222–1700. Retrieved from www.iiste.org Jones, D. (2000). Emerging problems with the Basel Capital Accord: Regulatory capital arbitrage and related issues. Journal of Banking and Finance, 24(1–2), 35–58. https://doi.org/10.1016/S0378-4266(99)00052-7 Kanwal, S., & Nadeem, M. (2013). The impact of macroeconomic variables on the profitability of listed commercial banks in pakistan, 2(9), 186–201. Mathuva, D. M. (2009). Capital Adequacy, Cost Income Ratio and the Performance of Commercial Banks: The Kenyan Scenario. The International Journal of Applied Economics and Finance, 3(2), 35–47. https://doi.org/10.3923/ijaef.2009.35.47 Merton, R. C. (1992). Financial Innovation and Economic Performance. Journal of Applied Corporate Finance, 4(4), 12–22. Miller, S. M., & Noulas, A. G. (1997). Portfolio mix and large-bank profitability in the USA. Applied Economics, 29(4), 505–512. https://doi.org/http://dx.doi.org/10.1080/ 000368497326994 Muda, M., Shaharuddin, A., & Embaya, A. (2013). Profitability determinants and the impact of Global financial Crisis: A panel data analysis of Malaysian Islamic banks. Research Journal of Finance and Accounting, 4(7), 121–130. Nguyen, H. T. K., & Nguyen, D. T. (2018). Globalisation and bank performance in Vietnam. Malaysian Journal of Economic Studies, 55(1), 49–70. Oluwaseyi Ebenezer, O., Ahmad Wan Bin Omar, W., & Kamil, S. (2017). Bank Specific and Macroeconomic Determinants of Commercial Bank Profitability: Empirical Evidence from Nigeria. Journal of Finance & Banking Studies International Journal of Finance & Banking Studies, 6(1), 25–38. https://doi.org/10.20525/ijfbs.v6i1.627 Petria, N., Capraru, B., & Ihnatov, I. (2015). Determinants of Banks’ Profitability: Evidence from EU 27 Banking Systems. Procedia Economics and Finance, 20(15), 518–524. https://doi.org/10.1016/S2212-5671(15)00104-5 Robin, I., Salim, R., & Bloch, H. (2018). Financial performance of commercial banks in the post-reform era: Further evidence from Bangladesh. Economic Analysis and Policy, 58, 43–54. https://doi.org/10.1016/j.eap.2018.01.001 Rogers, E. M. (1962). Diffusion of innovations. The Free Press (3rd Editio). New York. https://doi.org/citeulike-article-id:126680 Sathye, M. (2005). The impact of internet banking on performance and risk : The Indian Experience. Eurasian Journal of Business and Economics, 6(2), 163–174. https://doi.org/10.1057/palgrave.jbr.2340189 Shih, Y., & Fang, K. (2004). The use of a decomposed theory of planned behavior to study Internet banking in Taiwan. Internet Research, 14(3), 213–223. https://doi.org/10.1108/10662240410542643 Siddik, N. A., Sun, G., Kabiraj, S., Shanmugan, J., & Yanjuan, C. (2016). Impacts Of E-Banking On Performance Of Banks In A Developing Economy: Empirical Evidence From Bangladesh, 17(6), 1066–1080. https://doi.org/10.3846/16111699.2015.1068219 Sufian, F., & Habibullah, M. S. (2009). Determinants of bank profitability in a developing economy: Empirical evidence from Bangladesh. Journal of Business Economics and Management, 10(3), 207–217. https://doi.org/10.3846/1611-1699.2009.10. 207-217 Sufian, F., & Habibullah, M. S. (2012). Globalizations and bank performance in China. Research in International Business and Finance, 26(2), 221–239. https://doi.org/10.1016/j.ribaf.2011.12.005 Sufian, F., Kamarudin, F., & Nassir, A. md. (2016). Determinants of efficiency in the malaysian banking sector: Does bank origins matter? Intellectual Economics, 10(1), 38–54. https://doi.org/10.1016/j.intele.2016.04.002 Sullivan, R. J. (2000). How Has the Adoption of Internet Banking Affected Performance and Risk in Banks ? Financial Industry Perspectives, 1–16. Tunay, K. B., Tunay, N., & Akhisar, İ. (2015). Interaction Between Internet Banking and Bank Performance: The Case of Europe. Procedia - Social and Behavioral Sciences, 195, 363–368. https://doi.org/10.1016/j.sbspro.2015.06.335 Ugwueze, A. C., & Nwezeaku, N. C. (2016). E-Banking and Commercial Bank Performance in Nigeria: A Cointegration and Causality Approach. International Journal of E-Education, e-Business, e-Management and e-Learning, 6(3), 175–185. https://doi.org/10.17706/ijeeee.2016.6.3.175-185 Webster, L. (1997). The Impact of Technological Change on Bank Performance, 21, 41–47. Weigelt, C., & Sarkar, M. (2012). Performance implications of outsourcing for technological innovations: Managing the efficiency and adaptability trade-off. Strategic Management Journal, 33(2), 189–216. https://doi.org/10.1002/smj.951 Xiaoxi, Z., & Daly, K. (2014). The Impact of Bank-Specific and Macroeconomic Factors on China’s Bank Performance ok. The Chinese Economy, 47(5–6), 5–28. https://doi.org/10.2753/CES1097-1475470501

Commercial bank performance in digital era : evidence from Malaysia

Similar Items