The Effect of Information Resources Management in the UK on Financial Institutions

The authors adopt the resource-based view (RBV) and information processing theory to discover the problems that impact the capital structure of financial institutions in the UK. Five firm-level explanatory variables (profitability, size, tangibility, age, and growth) were selected. The relevant capi...

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Bibliographic Details
Published in:Journal of global information management 2023-11, Vol.31 (1), p.1-25
Main Authors: Chang, Victor, Xu, Qianwen Ariel, Kozah, Vincent Andrew, Shi, Yujie, Mills, Jonathan, Chen, Xihui Haviour
Format: Article
Language:English
Subjects:
Data processing
Dependent variables
Financial management
Information management
Information resources
Information resources management
Institutions
Profitability
Resource management
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Summary:The authors adopt the resource-based view (RBV) and information processing theory to discover the problems that impact the capital structure of financial institutions in the UK. Five firm-level explanatory variables (profitability, size, tangibility, age, and growth) were selected. The relevant capital structure measure was then regressed against the dependent variable leverage (debt-to-equity ratio). Consequently, correlation and multivariate regressions are applied to firm financial data from the selected financial institutions during the fiscal years 2011–2022. The primary conclusions of the study indicate that important information resources management variables for financial institutions in the UK are profitability and size. While the two other factors, profitability and growth, exhibit negative associations with capital structure, the remaining four variables, tangibility, size, age, and profitability, did not. The study reveals that optimal determinants of information resources management enhance financial performance in the case of top UK banks.
ISSN:1062-7375
1533-7995
DOI:10.4018/JGIM.334015