The Impact of Technology Expenditure on the Commercial Banks’ Profitability in Canada
Zijun Lin, Yunan Wang · Advances in economics, business and management research/Advances in Economics, Business and Management Research · 2022
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.