The Effect of Diversification, Bank Governance and Bank Characteristics on Bank Value－A Case of Taiwanese Banks

• Main Authors: Song-Yuh Ho, 何嵩昱
• Other Authors: Lie-Huey Wang
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/tdr9ef

碩士 === 銘傳大學 === 財務金融學系碩士班 === 97 === Due to the open attitude from government, financial liberalization, and gradual reduction in interest rate between the deposit and loan, many financial organizations seek new revenue. In this study, data were gathered from 24 Taiwan listed banks during the period from 2003 to 2007, and using panel data analysis to measure the effect of diversification, bank governance and bank characteristics on bank value. In addition, we also examine the different pattern between financial holding banks and non-financial holding banks on bank value. The result shows that financial holding banks have a greater degree of asset diversification; non-financial holding banks have a greater degree of income diversification. Overall, the more diversification, the higher value is in financial holding banks; the more diversification, the lower value is in non-financial holding banks. There are both diversification premium and diversification discount in banking industry. The bank value increases as higher board ownership, higher net interest margin and lower non-performing loan ratio. Furthermore, in financial holding banks, the bank value increases as higher net interest margin, higher capital adequacy ratio, lower non-performing loan ratio. In non-financial holding banks, the board ownership, government ownership, and net interest margin have significantly positive relationship with bank value, but the blockholder ownership, capital adequacy ratio, and non- performing loan ratio have significantly negative relationship with bank value.