Arab Journal of Administration المجلة العربية للإدارة


The study aimed at identifying the impact of investment in information technology (Investment in hardware, software, and the number of ATMs) on the financial performance of Saudi banks listed on the stock market according to the traditional standards of financial performance, which include, return on assets, return on equity. A review of the theoretical literature for relevant research showed a positive relationship between investment in information technology with its three elements and financial performance of financial institutions. The study covered all Saudi banks listed on the Saudi stock market, during the period 2006-2012, and the study used common regression (Pooled Data Regression).The analysis for study raw data which obtained from trading website (Tadawal) as well as annual reports of banks, has been reached a number of conclusions the most important, the presence of a positive impact of investment in technology information (investment in hardware, investment in software, and the number of ATMs) on the performance of Saudi banks. In light of the results that had been reached, the study presented many recommendations including the need to intensify the investment operations in the field of information technology by both the banks in particular and companies in general because of its importance in improving services and increasing financial performance.