| Summary: | 碩士 === 朝陽科技大學 === 財務金融系碩士班 === 96 === Recently mergers and acquisitions of financial industries upsurge again and again. This situation is basically in response to the current trend of economics globalization and therefore we adopt a longitudinal and latitudinal strategy in order to improve the competitiveness and pursue combinative effects. Here are several main motivations of mergers and acquisitions. Some are to expand the occupation rate of the market, magnify the operating scale, develop diversifications, enter different areas and pursue high profits. Others are merged to survive because of poor managements and bad debts. The rest of them are to save the capitalized cost and promote the operating efficiency.
In a foreign financial industry it commonly brings about a huge shock whether Citibank US was merged with Traveler Group or Dai-Ichi Kangyo Bank, French bank Societe Generale and Fuji Bank were consolidated to form the world-largest-asset bank. As a result the proceeding to the large-scale bank has become a strategy of the financial market globalization. In contrast, domestic markets are small compared to foreign scales. In consequence the government carries out the financial holding company law to improve the competitiveness of a financial market. It also hopes to promote the competitiveness of the financial institute and connect to the international standard by setting up financial holding companies.
This study is based on a translog function. In this paper we probe whether the operating performance of each domestic financial holding company works efficiently after passing the financial holding company law, study categories and the rankings of them and discuss that different operating methods cause the diversities among the stock-based, banks-based or insurances-based financial holding companies. The insurance-type financial holding industry is worse than the stock-type one and the bank-type one in the aspect of cost and scale efficiency. It is probably because the insurance industry has a larger scale and the property of the business differs dramatically from latter two types. This paper discusses whether cost function and scale performance of the financial holding company become better after being merged. By studying the present situation of mergers and acquisitions of financial holding companies in Taiwan, we hope to be able to provide a thoughtful direction to future financial holding industries when they are merged and consolidated.
|
|---|
