The effect of information technology investment announcements on the market value of Spanish banks

Abstract

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This study examines the impact of information technology (IT) investments on the market value of Spanish banks using the event-study methodology. A total of 193 announcements from 1996 to 2001 were analyzed and categorized by investment type (innovation, cooperation, internet, and internal use). The results indicate that internet-related investments generate higher positive returns, although with limitations in explaining their origin. The analysis highlights differences in the effects depending on the nature of the investments and questions the accuracy of this methodology in fully capturing the dynamics of business value creation.