Do Banks increase their EVA or MVA after being merged as Financial Holding Companies？

• Main Authors: Donq-Liang Huang, 黃棟樑
• Other Authors: Dr.Chi Chih-Yi
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/46426590800123028095

碩士 === 國立中興大學 === 高階經理人碩士在職專班 === 93 === Since 2002, there have been 14 financial holding companies (FHCs) established by mergers among banks, insurance companies, and stock broker houses. Compared with the separate units, FHCs are believed to have cost advantages and be more efficient. In this study, we use two performance measures, Economic Value Added (EVA) and Market Value Added (MVA), to examine whether FHCs perform better. We calculate (1) the EVA and the MVA of the14 FHCs in 2002 and 2003, and (2) the EVA and the MVA of the member companies before they were merged. We then compare (1) with (2). The results show that the improvement in EVA or MVA is not significant, and we conclude that until now, the claimed benefits of FHCs are not realized yet.