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

Author:

Chang Victor1ORCID,Kozah Vincent Andrew1,Xu Qianwen Ariel1,Shi Yujie1ORCID,Chen Xihui Haviour2ORCID,Mills Jonathan1ORCID

Affiliation:

1. Aston University, UK

2. Herriot-Watt University, UK

Abstract

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.

Publisher

IGI Global

Subject

Information Systems and Management,Management Science and Operations Research,Strategy and Management,Computer Science Applications,Business and International Management

Reference88 articles.

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3. Determinants of Capital Structure: United Kingdom Versus Continental European Countries

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