Incremental performance of an eChannel addition: Long-term and volatility consideration perspectives

doi:10.1108/IntR-11-2012-0227

機構典藏 > College of Business and Management > Department of Management Sciences > Journal Article > Item 987654321/99469

Please use this identifier to cite or link to this item: https://tkuir.lib.tku.edu.tw/dspace/handle/987654321/99469

Title:	Incremental performance of an eChannel addition: Long-term and volatility consideration perspectives
Authors:	Lee, Yung-Hsin;Chen, Lily Shui-Lien;Chen, I-Fei;Lin, Bing-Huei
Contributors:	淡江大學管理科學學系
Keywords:	Internet channel;Black-Scholes-Merton option pricing model;eChannel;eChannel performance
Date:	2014-01-28
Issue Date:	2014-11-03 15:29:38 (UTC+8)
Publisher:	Emerald Group Publishing Limited
Abstract:	Purpose – The purpose of this paper is to use the Black-Scholes-Merton option pricing model to evaluate the incremental performance of an eChannel addition. Design/methodology/approach – Data were collected from 53 Taiwan financial services firms. In total, 33 of them introduced their online services, whereas the other 20 firms did not introduce their online services during the period under examination. Findings – The research findings show that firm asset values increase following eChannel additions. Thus, eChannel additions enhance firm financial performance. A further analysis comparing the performance between firms with and without eChannel additions also shows that firms with eChannel additions have higher asset value growth rates, which further validates the capacity of eChannel additions to enhance financial performance. Practical implications – Managers and shareholders in firms making eChannel additions are not required to be concerned regarding stock price volatility, and managers in firms without any eChannel investment could use eChannels to enhance their stock price and seize future opportunities. Using eChannel is a valid approach for firms to provide enhanced services to current customers, access new markets, and extend market coverage, thus enhancing overall financial performance. Investors could confide those firms implementing eChannel additions. Originality/value – Studies investigating whether eChannel additions enhance firm financial performance are scant. No study has evaluated performance from a long-term perspective or from a volatility aspect (both are important considerations in eChannel performance evaluation). The research represents a pioneering work that empirically investigates these issues.
Relation:	Internet Research 24(1), p.46-62
DOI:	10.1108/IntR-11-2012-0227
Appears in Collections:	[Department of Management Sciences] Journal Article

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