Will eChannel additions increase the financial performance of the firm?-The evidence from Taiwan

Julian Ming Sung Cheng; Show Ming Tsao; Wen Hsien Tsai; Hill H.J. Tu

doi:10.1016/j.indmarman.2006.06.011

Will eChannel additions increase the financial performance of the firm?-The evidence from Taiwan

Julian Ming Sung Cheng, Show Ming Tsao, Wen Hsien Tsai, Hill H.J. Tu

Department of Business Administration

Research output: Contribution to journal › Article › peer-review

51 Scopus citations

Abstract

The emergence of the Internet has forced firms to add eChannels to their existing channel system. Nevertheless, empirical studies failed to provide direct evidence on whether eChannel addition could enhance the financial performance of the firm. In this research, an attempt was made to fill in this literature gap from three financial measure perspectives, i.e., Event Study methodology, Economic Value Added (EVA) measure and Market Value Added (MVA) measure. Empirical data were collected from Taiwan's financial service sector. The finding revealed that eChannel addition announcement could increase a firm's accumulative abnormal returns, EVA value and MVA value. We therefore concluded that eChannel addition could help increase the financial performance of the firm.

Original language	English
Pages (from-to)	50-57
Number of pages	8
Journal	Industrial Marketing Management
Volume	36
Issue number	1
DOIs	https://doi.org/10.1016/j.indmarman.2006.06.011
State	Published - Jan 2007

Keywords

Economic value added
Event study
Internet channel
Market value added
eChannel

Access to Document

10.1016/j.indmarman.2006.06.011

Cite this

@article{e530e1e3f1144595849fcf1e597581d5,

title = "Will eChannel additions increase the financial performance of the firm?-The evidence from Taiwan",

abstract = "The emergence of the Internet has forced firms to add eChannels to their existing channel system. Nevertheless, empirical studies failed to provide direct evidence on whether eChannel addition could enhance the financial performance of the firm. In this research, an attempt was made to fill in this literature gap from three financial measure perspectives, i.e., Event Study methodology, Economic Value Added (EVA) measure and Market Value Added (MVA) measure. Empirical data were collected from Taiwan's financial service sector. The finding revealed that eChannel addition announcement could increase a firm's accumulative abnormal returns, EVA value and MVA value. We therefore concluded that eChannel addition could help increase the financial performance of the firm.",

keywords = "Economic value added, Event study, Internet channel, Market value added, eChannel",

author = "Cheng, {Julian Ming Sung} and Tsao, {Show Ming} and Tsai, {Wen Hsien} and Tu, {Hill H.J.}",

note = "Funding Information: The support of the MOE Program of Taiwan's Ministry of Education is acknowledged (Project Number 91-H-FA08-1-4). ",

year = "2007",

month = jan,

doi = "10.1016/j.indmarman.2006.06.011",

language = "???core.languages.en_GB???",

volume = "36",

pages = "50--57",

journal = "Industrial Marketing Management",

issn = "0019-8501",

number = "1",

}

TY - JOUR

T1 - Will eChannel additions increase the financial performance of the firm?-The evidence from Taiwan

AU - Cheng, Julian Ming Sung

AU - Tsao, Show Ming

AU - Tsai, Wen Hsien

AU - Tu, Hill H.J.

N1 - Funding Information: The support of the MOE Program of Taiwan's Ministry of Education is acknowledged (Project Number 91-H-FA08-1-4).

PY - 2007/1

Y1 - 2007/1

N2 - The emergence of the Internet has forced firms to add eChannels to their existing channel system. Nevertheless, empirical studies failed to provide direct evidence on whether eChannel addition could enhance the financial performance of the firm. In this research, an attempt was made to fill in this literature gap from three financial measure perspectives, i.e., Event Study methodology, Economic Value Added (EVA) measure and Market Value Added (MVA) measure. Empirical data were collected from Taiwan's financial service sector. The finding revealed that eChannel addition announcement could increase a firm's accumulative abnormal returns, EVA value and MVA value. We therefore concluded that eChannel addition could help increase the financial performance of the firm.

AB - The emergence of the Internet has forced firms to add eChannels to their existing channel system. Nevertheless, empirical studies failed to provide direct evidence on whether eChannel addition could enhance the financial performance of the firm. In this research, an attempt was made to fill in this literature gap from three financial measure perspectives, i.e., Event Study methodology, Economic Value Added (EVA) measure and Market Value Added (MVA) measure. Empirical data were collected from Taiwan's financial service sector. The finding revealed that eChannel addition announcement could increase a firm's accumulative abnormal returns, EVA value and MVA value. We therefore concluded that eChannel addition could help increase the financial performance of the firm.

KW - Economic value added

KW - Event study

KW - Internet channel

KW - Market value added

KW - eChannel

UR - http://www.scopus.com/inward/record.url?scp=33751538134&partnerID=8YFLogxK

U2 - 10.1016/j.indmarman.2006.06.011

DO - 10.1016/j.indmarman.2006.06.011

M3 - 期刊論文

AN - SCOPUS:33751538134

SN - 0019-8501

VL - 36

SP - 50

EP - 57

JO - Industrial Marketing Management

JF - Industrial Marketing Management

IS - 1

ER -

Will eChannel additions increase the financial performance of the firm?-The evidence from Taiwan

Abstract

Keywords

Access to Document

Fingerprint

Cite this