An Analysis of Merger Performence of Different Characteristic Finanacial Holdings Companies in Taiwan

• Main Authors: Yang Yeu-Shun, 楊雨順
• Other Authors: Goo Yeong-Jia+Chien Ming-Che
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/15134813624825883471

碩士 === 國立臺北大學 === 企業管理學系碩士在職專班 === 95 === To have a better and healthier financial environment to increase the competitiveness of the financial institutions in Taiwan, the government in Taiwan passed the Financial Holdings Company Law in 2001. As a result, financial institutions are allowed to own banks, insurance companies, securities companies, and other financial companies at the same time. This has created sequential mergers and acquisitions between and among financial institutions and has started the era of the financial holdings company (FHC) in Taiwan as well. For the past 5 years since FHC was allowed to be chartered, the financial industry has experienced substantial structural changes. The main purpose of this study is to analyze different merger performances among different characteric FHC in Taiwan. Fourteen FHCs are thus categorized into bank, insurance, and security characteristics. The establishment of the FHCs is further categorized as the early stage of 2002-2004 and the later stage of 2005-2006 as well. Different characteristics and establish stages of the FHCs are analyzed to see if there exist significant differences for FHC’s stock returns and price to net worth ratios. The Analysis-of-Variance (ANOVA) is used to test if FHC’s stock returns and price to net worth ratios are significantly different from each other under different characteristics and establish stages. Empirical results show that there exist no significant differences in stock returns for different characteristic FHCs. However, the price to net worth ratio do exist significant difference. Among these, the FHCs with insurance characteristic have the highest price to net worth ratio, FHCs with bank characteristic have a higher price to net worth ratio, and FHCs with security characteristic have the least price to net worth ratio. Stock returns are found to be significantly different from the early establish stage of FHC to later establish stage with the early stage stock returns are higher than the later stage. However, price to net worth ratios are found not significantly different from each other. Key Words： Financial Holdings Company, Analysis-of-Variance, Stock Return, Price to Net Worth Ratio