Performance implications of internet channels in financial services: A comprehensive perspective

Tu, Hung-Jen

doi:10.1007/s12525-012-0108-0

Cited by 8 publications

(19 citation statements)

References 43 publications

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“…The eChannel users can conduct transactions anywhere and at any time, and eChannel firms can access and satisfy customers through the interactive response mechanism with location and time flexibilities. Thus, the eChannel is an indispensable channel to reach the potential market quickly and easily (Tu, 2012;Hsiao et al, 2012). The eChannel is an effective transaction operation method because of its faster transaction speed,…”

Section: Hypothesesmentioning

confidence: 99%

“…Three studies related to performance in connection with an eChannel addition (Geyskens et al, 2002;Cheng et al, 2007;Tu, 2012) used the event study method, the economic value added (EVA), the market value added (MVA), and data envelopment analysis (DEA) approaches to evaluate a firm's overall performance for eChannel additions. However, these approaches fail to reflect adequately the long-term financial effects of eChannel additions in the volatile e-commerce environment.…”

Section: Introductionmentioning

confidence: 99%

“…Literature review and hypothesis development 2.1 The eChannel addition performance literature Literature on eChannel addition performance is rare, ranging from the Geyskens et al (2002) study and the Cheng et al (2007) study to the research by Tu (2012). Geyskens et al (2002) adopted the event study method to evaluate internet-added channel performance by using daily stock prices of 22 firms within a 30-day period.…”

Section: Introductionmentioning

confidence: 99%

“…Consequently, the MVA approach in addressing eChannel evaluation cannot properly measure the market volatility effect, a serious consideration in 48 INTR 24,1 conducting internet commerce (Ofek and Richardson, 2002;Cao and Gruca, 2003). DEA is another long-term evaluation method that collects profit margin percentage, return on equity (ROE), and day receivables as output variables (Tu, 2012). However, this approach also fails to measure the market volatility effect.…”

Section: Introductionmentioning

confidence: 99%

“…Given market coverage extension, market expansion, marketing function shift, relationship deepening, customer retention, and loyalty improvement (Geyskens et al, 2002;Boehm, 2008;Xia and Zhang, 2010;Avery et al, 2012;Tu, 2012), firms can improve their performance following eChannelization.…”

mentioning

confidence: 99%

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Incremental performance of an eChannel addition

Lee

Chen

et al. 2014

Internet Research

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Purpose -The purpose of this paper is to use the Black-Scholes-Merton option pricing model to evaluate the incremental performance of an eChannel addition. Design/methodology/approach -Data were collected from 53 Taiwan financial services firms. In total, 33 of them introduced their online services, whereas the other 20 firms did not introduce their online services during the period under examination. Findings -The research findings show that firm asset values increase following eChannel additions. Thus, eChannel additions enhance firm financial performance. A further analysis comparing the performance between firms with and without eChannel additions also shows that firms with eChannel additions have higher asset value growth rates, which further validates the capacity of eChannel additions to enhance financial performance. Practical implications -Managers and shareholders in firms making eChannel additions are not required to be concerned regarding stock price volatility, and managers in firms without any eChannel investment could use eChannels to enhance their stock price and seize future opportunities. Using eChannel is a valid approach for firms to provide enhanced services to current customers, access new markets, and extend market coverage, thus enhancing overall financial performance. Investors could confide those firms implementing eChannel additions. Originality/value -Studies investigating whether eChannel additions enhance firm financial performance are scant. No study has evaluated performance from a long-term perspective or from a volatility aspect (both are important considerations in eChannel performance evaluation). The research represents a pioneering work that empirically investigates these issues.

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Section: Hypothesesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

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Incremental performance of an eChannel addition

Lee

Chen

et al. 2014

Internet Research

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Market reaction to the announcement of online sales channel investment in enterprises: Evidence from a relatively stable market environment

Lei

Zhou

Cheung

et al. 2021

Electron Commer Res

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Although relevant literature investigates the economic value of online sales channel (OSC) from the perspective of the stock market, knowledge on this topic remains insufficient or unclear because existing studies are conducted under an extremely turbulent market environment and have not considered different aspects. This study aims to examine the topic by focusing on the market reactions to OSC investment from three aspects (namely, the innovativeness, business model and goods types) in a relatively stable market environment to fill in the research gap. Empirical results, obtained using 69 firm-level OSC announcements from October 2002 to September 2007, show that the stock market reacts positively to OSC investment by firms. Additionally, the stock market reactions to OSC investment mainly depend on two key characteristics, namely investment innovativeness and business model applied.

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A meta-analysis of the factors influencing the impact of security breach announcements on stock returns of firms

Ebrahimi

Eshghi

2022

Electron Markets

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Performance implications of internet channels in financial services: A comprehensive perspective

Cited by 8 publications

References 43 publications

Incremental performance of an eChannel addition

Incremental performance of an eChannel addition

Market reaction to the announcement of online sales channel investment in enterprises: Evidence from a relatively stable market environment

A meta-analysis of the factors influencing the impact of security breach announcements on stock returns of firms

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