Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)

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The Impact of Technology Expenditure on the Commercial Banks’ Profitability in Canada

Authors
Zijun Lin1, *, Yunan Wang2
1Tandon School of Engineering, New York University, New York, USA
2Minzu University, Beijing, China
*Corresponding author. Email: zl3555@nyu.edu
Corresponding Author
Zijun Lin
Available Online 27 December 2022.
DOI
10.2991/978-94-6463-052-7_26How to use a DOI?
Keywords
Cyber security; Data breach; Bank performance; Profitability; Technology expenses; Multiple linear regression
Abstract

The growing cyber threat has created an uncontrollable financial mess for the global banking industry. This paper presents a case study that reviews Canada's largest financial data breach and investigates the spillover effects of cyber attack. To test the cyber investment efficiency of banks in Canada, we collect technology-related expenditures and profitability ratios from six Canadian central banks’ annual reports. Moreover, we use a multiple linear regression model to examine the impact of technology spending on the financial performance of Canadian banks. The results show that technology expenditure has a significant negative impact on the financial performance of banks. However, we may find different results in future studies that can include more banks in the sample and obtain more comprehensive data sources.

Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
27 December 2022
ISBN
978-94-6463-052-7
ISSN
2352-5428
DOI
10.2991/978-94-6463-052-7_26How to use a DOI?
Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Zijun Lin
AU  - Yunan Wang
PY  - 2022
DA  - 2022/12/27
TI  - The Impact of Technology Expenditure on the Commercial Banks’ Profitability in Canada
BT  - Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)
PB  - Atlantis Press
SP  - 220
EP  - 227
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-052-7_26
DO  - 10.2991/978-94-6463-052-7_26
ID  - Lin2022
ER  -