| Summary: | 碩士 === 長榮大學 === 經營管理研究所 === 94 === The purpose of this thesis is to examine the synergies of acquired financial subsidiaries after merging into financial holding companies(FHC). Using a sample of fourteen FHCs and unmerged financial firms, this study computes seven performance measures and indicators of synergies. The nonparametric Wilcoxon signed-rank, Kruskal-Wallis and Mann-Whitney tests are used to test the null hypothesis. In addition, all fourteen FHCs’ risk are estimated using the Value at Risk (VaR) of daily stock prices.
The key findings of the study are : (1) only weak evidence was found for the null hypothesis that merger improves efficiency of acquired financial subsidiaries by merging into a FHC; (2) FHCs leaded by different financial institutions can have significant different effect on its subsidiary’s performance. The results indicate that insurance-leaded FHCs perform the best; (3) Although FHCs consisting of more subsidiaries tend to gain more synergy, the optimal size of subsidiaries is not yet known; (4) The asset size of the FHC does not seem to be a significant factor in determining the performance of FHCs’ financial subsidiaries; (5) Merged financial institutions perform better than their counterpart of unmerged financial institutions; (6) The VaR varies significantly among these fourteen FHCs. However, Vars are less stable for E.SUN, Fuhwa and Taishin FHCs, and the rest of eleven FHCs’ VaRs decline quarterly.
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