FinTech revolution: the impact of management information systems upon relative firm value and risk : WestminsterResearch

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Title	FinTech revolution: the impact of management information systems upon relative firm value and risk
Type	Journal article
Authors	Mitra, S. and Karathanasopoulos, A.
Abstract	The FinTech or ‘financial technology’ revolution has been gaining increasing interest as technologies are fundamentally changing the business of financial services. Consequently, financial technology is playing an increasingly important role in providing relative performance growth to firms. It is also well known that such relative performance can be observed through pairs trading investment. Therefore pairs trading have implications for understanding financial technology performance, yet the relationships between relative firm value and financial technology are not well understood. In this paper we investigate the impact of financial technology upon relative firm value in the banking sector. Firstly, using pairs trade data we show that financial technologies reveal differences in relative operational performance of firms, providing insight on the value of financial technologies. Secondly, we find that contribution of relative firm value growth from financial technologies is dependent on the specific business characteristics of the technology, such as the business application and activity type. Finally, we show that financial technologies impact the operational risk of firms and so firms need to take into account both the value and risk benefits in implementing new technological innovations. This paper will be of interest to academics and industry professionals.
Keywords	FinTech, Financial technology, Operational risk, Relative firm value, Firm value, Risk management, Pairs trading, Shareholder value
Journal	Journal of Banking and Financial Technology
Journal citation	4, p. 175–187
ISSN	2524-7956
	2524-7964
Year	2020
Publisher	Springer
Publisher's version	Mitra-Karathanasopoulos2020_Article_FinTechRevolutionTheImpactOfMa.pdf License CC BY 4.0 File Access Level Open (open metadata and files)
Digital Object Identifier (DOI)	https://doi.org/10.1007/s42786-020-00023-0
Web address (URL)	https://link.springer.com/article/10.1007%2Fs42786-020-00023-0
Published online	06 Oct 2020
Supplemental file	License CC BY 4.0 File Access Level Open (open metadata and files)

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FinTech revolution: the impact of management information systems upon relative firm value and risk

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