The Effects of Bank Mergers on Performance in Taiwan

• Main Authors: Chia-Chi Wang, 王家麒
• Other Authors: 林惠玲
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/78514567071996652166

碩士 === 國立臺灣大學 === 經濟學研究所 === 94 === The thesis presents an analysis of the changes in performance after bank mergers in Taiwan. This research uses 2002-2005 panel data to examine the bank mergers. In this study, Return on Equity, Profit/Labor Expense Ratio and Net Interest Margin are measures to evaluate before and after performance of bank mergers. The results of the empirical study are summarized as follows: 1.Before mergers, the performance of merging banks is better than that of merged banks. 2.The performance of merging banks suffers negative effects from the beginning of the merger, but it would be improved with time. 3.The effects of mergers show that costs are not cut down. 4.Banks with smaller size would achieve economies of scale due to mergers. 5.The increasing of market share is significant to improve the performance and market power. 6.When considering the merging bank and merged bank as one bank before mergers, the Profit/Labor Expense Ratio rises after mergers. 7.Banks improve Return on Equity much more than Profit/Labor Expense Ratio after mergers.