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| Type | Master's Thesis |
| Scope | Discipline-based scholarship |
| Title | Payment Disruption: Banks Under Threat by Tech Giants |
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| Institution | University of Zurich |
| Faculty | Faculty of Business, Economics and Informatics |
| Number of Pages | 61 |
| Date | 2018 |
| Abstract Text | This thesis investigates the link between digital disruption by multinational tech compa-nies and incumbent banks. This is done through an event analysis that shows, whether investors take the threat of the new competitors serious. In order to do that, various an-nouncements by tech companies were selected, where they reveal to enter a new market. The aim of this thesis is to find an e˙ect on bank stock prices (abnormal returns) due to adjusted expectations about future profits of banks as soon as a launch is announced. The scope is limited to payment solutions by multinational tech companies and their influence on banks from the United States, United Kingdom and Switzerland. Two types of event studies were conducted; the classic type, where abnormal returns are captured within the residuals of the model, and a second type, where the abnormal returns are modeled into the regression model via dummy variables. The study reveals significant results on a aggregated level (particularly average abnormal returns) that provide evidence of negative reactions of bank investors to new informa-tion regarding the launch of new payment solutions. However, these e˙ects could not be proven to be sustainable over several days. |
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