Mid Sweden University

PurposeThis paper aims to understand the impact of the adoption of Internet banking (INB) on banks' profitability. It further investigates this relationship among different age groups of customers.Design/methodology/approachA large panel data set of 19 commercial banks in Sweden over the period of 2007-2022 is used, and both static models (ordinary least squares (OLS), fixed effect (FE)) and a dynamic model (generalized method of moments (GMM)) are applied to deal with potential concerns of unobserved heterogeneity and endogeneity.FindingsThe analysis of the data reveals that the adoption of INB is positively related to banks' profitability, but the magnitude of this relationship depends on the age of the customers. In particular, the effect is most pronounced for middle-aged and older customers (45-74 years old), which is inconsistent with the common assumption that young, digitally savvy customers are the main drivers of digital value in banking.Practical implicationsThis research contributes to understanding the role of age in the digitalization-profitability link, which is relevant for bank managers and policymakers. These results imply that targeting digital services at middle-aged and older customers may be more likely to benefit banks' profitability. Additionally, policymakers can develop initiatives to facilitate digital inclusion among older age groups.Originality/valueThe paper extends previous research on the link between INB adoption and banks' profitability in one of the most digitalized societies in the world. It particularly explores the less investigated aspect of generational differences in INB adoption and its impact on bank profitability. To the best of our knowledge, this is also the first study within the Swedish context to investigate generational differences in INB adoption and its impact on banks' profitability.

PurposeThis study aims to investigate the determinants of bank profitability in Sweden, focusing on the impact of bank-specific, macroeconomic and industry-specific factors within a regulatory and compliance framework.Design/methodology/approachThe study uses a panel data set of Swedish banks and three econometric models, ordinary least squares (OLS), fixed effects (FE) and panel-corrected standard errors (PCSE), to address unobserved heterogeneity, heteroskedasticity, contemporaneous correlation and serial autocorrelation.FindingsThe findings reveal the critical role of bank-specific factors in shaping banks' profitability, while macroeconomic and industry variables have a negligible impact. Capital adequacy emerges as a robust determinant, underscoring its regulatory significance. Lagged profitability exerts a persistent influence across models, emphasizing the role of historical performance. Banks' revenue growth also shows consistent positive and significant effects across all models. Macroeconomic variables (GDP, inflation) show negligible impacts, while monetary policy indicators (interest rates, money supply) display instability.Originality/valueThe study's originality lies in its methodological rigor and focus on Sweden, a developed yet understudied market. The study offers novel insights into how regulatory frameworks, bank strategies and macroeconomic conditions interact to shape profitability. By contrasting OLS, FE and PCSE results, the study advances methodological discourse on panel data analysis in banking, providing a template for future research in regulated financial systems. These contributions bridge theoretical, empirical and policy gaps, enriching global understanding of profitability drivers in stable, high-compliance economies.

Successful implementation of e-banking technology depends on how consumers perceive the technology and how likely they are to adopt it. Although several studies have analysed the impact of some specific negative emotions, few studies examine a broad range of consumers’ negative emotions (i.e. both deterrence and loss emotions) arising from appraisals of e-banking technology. This study investigates the possible relationships between deterrence and loss emotions, and consumers’ behavioural intention to adopt emerging e-banking technology. Based on the unified theory of acceptance and use of technology, partial least squares structural equation modelling was used to analyse a conceptual model and related hypotheses. The empirical evidence draws attention to the relationship between loss emotions and consumers’ behavioural intention to adopt emerging e-banking technology through effort expectancy and performance expectancy, respectively. 

Purpose: The purpose of this study is to empirically investigate the relationship between a set of functional and social–psychological barriers and bank customers’ intention to fully adopt digital payment methods (DPMs). Design/methodology/approach: The data were collected via an online questionnaire sent to two samples of Swedish bank customers, namely, adopters-accepters (i.e. young bank customers) and adopters-resisters (i.e. a group opposing a cashless society). Hypotheses were tested by applying an ordinal regression model. Findings: Regarding the adopters-accepters, privacy and access barriers can be obstacles to the full adoption of DPMs. The adopters-resisters perceived all five studied barriers as significant, though only the impersonalisation barrier seemed to matter when the barriers were related to their intention to fully adopt DPMs. Moreover, the results suggest that barriers have a stronger negative effect on the intention to fully adopt among those with extensive experience of DPMs. Practical implications: Based on the barriers affecting the intention of particular groups of bank customers to adopt DPMs, banks could implement customised measures to promote the ongoing development of digital financial services. Originality/value: In this under-researched area, this study provides empirical knowledge of the influence of various barriers on the intention of bank customers characterised as adopters-accepters and adopters-resisters to fully adopt DPMs. 

Purpose: The main purpose of this study is to describe and analyse the relationship between the 2008–2009 global financial crisis and small and medium-sized enterprises' cost of debt capital. Design/methodology/approach: Statistical methods, including multiple OLS and dynamic panel data, were used to analyse a longitudinal cross-sectional panel dataset of 3865 Swedish SMEs operating in five industry sectors over the 2008–2015 period. Findings: The results suggest that the cost of debt was influenced by the financial crisis and another macroeconomic factor, i.e. the interbank interest rate, and by firm-specific factors such as firm size and lagged cost of debt. Originality/value: To the authors' best knowledge, this is one of few studies to examine the cost of debt among SMEs during the crisis and post-crisis periods using data from a large-scale, longitudinal, cross-sectional database. 

As a contribution to research and theorizing on the economic role of new firm formation, we undertake the first ever investigation of regional employment effects of the entry of new social firms. Our study is guided by an established model of the employment effects of new firm entry over time and provides a direct comparison to the employment effects of commercial entrants. Our results show that the net employment effect of new social firms follows a wave pattern over the study’s eight-year horizon, apparently produced by the same combination of direct and indirect effects previously theorized for new commercial entrants. The results also indicate that net employment effect per social firm entrant is larger than for commercial firms. The study provides a first empirical assessment of employment creation effects of new social firms and contributes to a more nuanced theoretical understanding of employment effects across types of entrants. By specifying the economic contribution of social firms our study can open up a new track in social entrepreneurship research and provide important input to employment policy.