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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/3162

Title: Capital Investment Decisions on IT and Its Impact on Corporate value maximization the case of Ethiopian Financial Institutions
Authors: Dagne, Eyob
Advisors: Ato Gebremedhin G/hiwot
Copyright: Jun-2010
Date Added: 5-Jun-2012
Abstract: This study entitled “Capital Investment Decisions On IT And Its Impact On Corporate Value Maximization” has investigated the impact of IT on profitability and cost efficiency in six private commercial banks. The overall objectives of the study was to evaluate the general trend of using project appraisal tools, the rationale to invest on IT and the impact of IT on profitability and cost efficiency. In order to evaluate these objectives five years of data has been collected from six private banks. The data has been collected from two sources: the primary data has been gathered through questionnaire and the secondary data has been obtained from the banks’ published audited financial statements. In order to further strengthen the findings of this study the results has been tested by using t-test The findings of this study has revealed that with the exception of one bank all the remaining banks included in the survey have not used project appraisal tools to have an ex ante knowledge of the benefits and costs of IT investments. More over the rationale behind investing on IT was found to be strategic requirement (75%) and to be a leader in use of technology (50%) Evaluation of IT on the profitability and cost efficiency of high IT capital banks and the relatively low IT capital banks has been made by using key profit and cost ratios. The result of the study and the hypothesis testing have shown that high IT capital did not result in a significantly better profit and cost performance compared to the relatively low IT capital banks.
Description: Submitted to Addis Ababa University Faculty of Business and Public Administration School of graduate studies Department of Accounting and Finance
URI: http://hdl.handle.net/123456789/3162
Appears in:Thesis - Accounting & Finance

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