Open AccessEXPLORING THE IMPACT OF ICT DIFFUSION IN THE EUROPEAN BANKING INDUSTRY: EVIDENCE IN THE PRE- AND POST-COVID-19
Author(s) -
Antonella Francesca Cicchiello,
Matteo Cotugno,
Stefano Monferrà,
Salvatore Perdichizzi
Publication year - 2021
Publication title -
journal of financial management markets and institutions
Language(s) - English
Resource type - Journals
ISSN - 2282-717X
DOI - 10.1142/s2282717x21500109
Subject(s) - covid-19 , information and communications technology , profitability index , business , volatility (finance) , empirical evidence , stock (firearms) , financial system , monetary economics , economics , finance , engineering , medicine , political science , mechanical engineering , disease , pathology , infectious disease (medical specialty) , philosophy , epistemology , law
Based on daily data from Thomson Reuter’s Refinitiv, we investigate the effect of information and communication technology (ICT) on the profitability and risk of the European banking industry during the COVID-19 pandemic. Specifically, we empirically examine whether and how ICT diffusion affects banks’ stock return, credit default swaps (CDS) spreads and market volatility over the period spanning from January 1, 2020, to March 31, 2020. Our evidence demonstrates that ICT improves banks’ performance measures and reduces risks. These effects are more significant in the post-COVID-19 period.