The Evaluation of the Performance of IT Investments: An Empirical Analysis of the European Banking Industry

Abstract

The empirical analysis we conduct in this chapter responds to a need that has been very deeply felt over recent years: the need for an evaluation of the performance of investments in technology in an industry, like the banking industry, that makes intensive use of technology. As already indicated, our interest arises out of the fact that it has been demonstrated empirically in relation to the US banking industry that there has not been a positive relationship between productivity and investments in technology in the period following 1995. Such a situation contrasts starkly with all the other industries in the United States, where marked increases in productivity have been registered, especially in those characterised by an intensive use of technology.¹