{"publication_identifier":{"issn":["0044-2372","1861-8928"]},"page":"149-171","publication_status":"published","intvolume":" 93","volume":93,"date_created":"2025-01-06T08:23:33Z","publisher":"Springer Science and Business Media LLC","abstract":[{"text":"AbstractMotivated by diverging results from the literature, we investigate whether investments in information technology (IT) help banks to assess their loan portfolio. More specifically, we focus on the consequences of accumulated expenses for data processing on banks’ ability to estimate their loan loss accruals. We further test for differences when the banks’ borrowers get hit by the economic trouble from the COVID-19 pandemic. Using a sample of US commercial banks before and during the COVID-19 pandemic, we find more precise estimates of loan loss accruals during these troublesome times in banks that accumulated higher data processing expenses. Surprisingly, we do not find significant differences in the precision of loan loss accruals by banks’ IT investments during normal times. Our findings contribute to consolidate previously diverging results by showing that IT investments help banks following a structural break, such as the COVID-19 pandemic.\r\n","lang":"eng"}],"title":"The benefits of banks’ IT investments in times of trouble: evidence from loan loss accruals during the COVID-19 pandemic","user_id":"91345","status":"public","citation":{"ieee":"M. Sefried and J. Riepe, “The benefits of banks’ IT investments in times of trouble: evidence from loan loss accruals during the COVID-19 pandemic,” Journal of Business Economics, vol. 93, no. 1–2, pp. 149–171, 2022, doi: 10.1007/s11573-022-01100-0.","bibtex":"@article{Sefried_Riepe_2022, title={The benefits of banks’ IT investments in times of trouble: evidence from loan loss accruals during the COVID-19 pandemic}, volume={93}, DOI={10.1007/s11573-022-01100-0}, number={1–2}, journal={Journal of Business Economics}, publisher={Springer Science and Business Media LLC}, author={Sefried, Moritz and Riepe, Jan}, year={2022}, pages={149–171} }","ama":"Sefried M, Riepe J. The benefits of banks’ IT investments in times of trouble: evidence from loan loss accruals during the COVID-19 pandemic. Journal of Business Economics. 2022;93(1-2):149-171. doi:10.1007/s11573-022-01100-0","short":"M. Sefried, J. Riepe, Journal of Business Economics 93 (2022) 149–171.","apa":"Sefried, M., & Riepe, J. (2022). The benefits of banks’ IT investments in times of trouble: evidence from loan loss accruals during the COVID-19 pandemic. Journal of Business Economics, 93(1–2), 149–171. https://doi.org/10.1007/s11573-022-01100-0","chicago":"Sefried, Moritz, and Jan Riepe. “The Benefits of Banks’ IT Investments in Times of Trouble: Evidence from Loan Loss Accruals during the COVID-19 Pandemic.” Journal of Business Economics 93, no. 1–2 (2022): 149–71. https://doi.org/10.1007/s11573-022-01100-0.","mla":"Sefried, Moritz, and Jan Riepe. “The Benefits of Banks’ IT Investments in Times of Trouble: Evidence from Loan Loss Accruals during the COVID-19 Pandemic.” Journal of Business Economics, vol. 93, no. 1–2, Springer Science and Business Media LLC, 2022, pp. 149–71, doi:10.1007/s11573-022-01100-0."},"date_updated":"2025-01-06T08:23:57Z","type":"journal_article","publication":"Journal of Business Economics","issue":"1-2","_id":"57930","doi":"10.1007/s11573-022-01100-0","year":"2022","author":[{"first_name":"Moritz","full_name":"Sefried, Moritz","last_name":"Sefried"},{"id":"86351","first_name":"Jan","last_name":"Riepe","full_name":"Riepe, Jan"}],"language":[{"iso":"eng"}]}