SOURCE:

Faculty: Management Sciences
Department: Banking And Finance

CONTRIBUTORS:

Adewoyin, A. O.
Okafor, F.O.

ABSTRACT:

The study empirically investigated and determined the impact of investments in Information and Communication Technology (ICT) on performance of deposit money banks in Nigeria. It covered a period of 8 years (2006-2013), known as post-consolidated era to update knowledge on the subject matter. The study used secondary data extracted from audited financial statements and annual accounts of 13 deposit money banks with 3,750 branches that were purposefully sampled out of 20 deposit money banks with 5,218 branches that were operating as at 2013. Data were collected on ICT development cost (ICTdvc) and ICT maintenance cost (ICTmtc) as independent variables; while earnings per share (EPS), return on assets (ROA), profit before tax (PBT), profit after tax (PAT), and deposit (DEP) as dependent variables. Data were analyzed with the use of Ordinary Least Square with Multiple Regression Model using E-view 7.1 statistical package to determine F-statistic, t-statistic with associated probabilities to test the level of the variables. In addition, Granger Causality test was carried out to determine the causal link between the variables. The outcome of the results indicates that there are strong relationship between the dependent and the independent variables; though only EPS was granger-caused by ICT development. These indicate that investments in ICT has positive and great impact on performance of deposit money banks, but not the only factors responsible for performance of deposit money banks in Nigeria. The study recommends increase in ICT investments and public awareness for improved performance and global competitiveness.