Impact of Internet banking and social media adoption on profitability of local commercial banks in Malaysia

This study investigated the impact of Internet Banking and social media adoption on the profitability of local commercial banks in Malaysia. A sample of eight local commercial banks in Malaysia for the period ranging from 1998-2016 was chosen for this study. Multiple regression analysis was used t...

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Main Author:	Ng, Hui Chin
Format:	Thesis
Language:	eng eng
Published:	2017
Subjects:	HG Finance T Technology (General)
Online Access:	https://etd.uum.edu.my/7492/1/s820749_01.pdf https://etd.uum.edu.my/7492/2/s820749_02.pdf
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id	my-uum-etd.7492
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Murugiah, Logasvathi
topic	HG Finance T Technology (General)
spellingShingle	HG Finance T Technology (General) Ng, Hui Chin Impact of Internet banking and social media adoption on profitability of local commercial banks in Malaysia
description	This study investigated the impact of Internet Banking and social media adoption on the profitability of local commercial banks in Malaysia. A sample of eight local commercial banks in Malaysia for the period ranging from 1998-2016 was chosen for this study. Multiple regression analysis was used to identify the relationship between the dependent variable namely Net Interest Margin and independent variables including Internet Banking and social media which were in the form of dummy variables. Two control variables namely Loan Deposit Ratio and Loan Loss Provisions over Total Loans ratio were included to assure robustness and comparability in findings. Findings show that there was negative significant relationship between Internet Banking and social media on the profitability of local commercial banks in Malaysia at 0.01 significance levels. Thus, increasing usage of Internet Banking and social media by Malaysia’s local commercial banks caused margin compression in banks. Despite the reduction in term of bank profitability associated with Internet Banking and social media adoption, margin compression actually promote market efficiency in the long-term.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Ng, Hui Chin
author_facet	Ng, Hui Chin
author_sort	Ng, Hui Chin
title	Impact of Internet banking and social media adoption on profitability of local commercial banks in Malaysia
title_short	Impact of Internet banking and social media adoption on profitability of local commercial banks in Malaysia
title_full	Impact of Internet banking and social media adoption on profitability of local commercial banks in Malaysia
title_fullStr	Impact of Internet banking and social media adoption on profitability of local commercial banks in Malaysia
title_full_unstemmed	Impact of Internet banking and social media adoption on profitability of local commercial banks in Malaysia
title_sort	impact of internet banking and social media adoption on profitability of local commercial banks in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2017
url	https://etd.uum.edu.my/7492/1/s820749_01.pdf https://etd.uum.edu.my/7492/2/s820749_02.pdf
_version_	1747828227252944896
spelling	my-uum-etd.74922021-05-10T07:05:49Z Impact of Internet banking and social media adoption on profitability of local commercial banks in Malaysia 2017 Ng, Hui Chin Murugiah, Logasvathi Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance T Technology (General) This study investigated the impact of Internet Banking and social media adoption on the profitability of local commercial banks in Malaysia. A sample of eight local commercial banks in Malaysia for the period ranging from 1998-2016 was chosen for this study. Multiple regression analysis was used to identify the relationship between the dependent variable namely Net Interest Margin and independent variables including Internet Banking and social media which were in the form of dummy variables. Two control variables namely Loan Deposit Ratio and Loan Loss Provisions over Total Loans ratio were included to assure robustness and comparability in findings. Findings show that there was negative significant relationship between Internet Banking and social media on the profitability of local commercial banks in Malaysia at 0.01 significance levels. Thus, increasing usage of Internet Banking and social media by Malaysia’s local commercial banks caused margin compression in banks. Despite the reduction in term of bank profitability associated with Internet Banking and social media adoption, margin compression actually promote market efficiency in the long-term. 2017 Thesis https://etd.uum.edu.my/7492/ https://etd.uum.edu.my/7492/1/s820749_01.pdf text eng public https://etd.uum.edu.my/7492/2/s820749_02.pdf text eng public other masters Universiti Utara Malaysia Acharya, R. N., Kagan, A., & Rao Lingam, S. (2008). Online banking applications and community bank performance. International Journal of Bank Marketing, 26(6), 418-439. Al-Smadi, M. O., & Al-Wabel, S. A. (2015). The impact of e-banking on the performance of Jordanian banks. 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Impact of Internet banking and social media adoption on profitability of local commercial banks in Malaysia

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