An Empirical Study on the Performances of Security Companies Hold by Financial Holding Companies

• Main Authors: Jway-Kuang Chang, 張瑞坤
• Other Authors: Yuh-sheng Horng
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/723ac9

碩士 === 靜宜大學 === 管理碩士在職專班 === 97 === Being effective as from Nov. 1, 2001, Financial Holding Company Act was passed with the purpose of letting the local large enterprises or financial groups in Taiwan perform integration of resources. Since Financial Holding Company Act allows cross-industry marketing, encourages the subsidiary companies inside members to undergo cross-sale, and emphasizes the division of professionals and sharing of resources, the Act enables companies to work beyond the operation scope specified in the original Banking Act, and helps banks earn profits. Especially when the current competition among financial firms is very intensive and the overdue loan ratio is commonly high, it is required to have more positive ways of reform to face these problems. And the implementation of Financial Holding Company Act shall be helpful for financial firms to break through the predicaments of the great environment. The implementation of Financial Holding Company Act has caused extremely great impacts to the banking industry, and created structural effects to the operation of financial institutions. Nevertheless, the Act has relatively less effects on the securities companies, which also belong to financial institutions in a broad sense. According to the recognition of the Ministry of Finance, both securities industry and the banking and investment consulting business belong to uncategorized business. It is known that uncategorized business cannot undergo merging. Under these circumstances, even though Financial Holding Company Act encourages financial firms to perform merging, securities companies still cannot concurrently operate investment consulting under the loosened act. Their additional operation of starting business and making investment for customers also arouse controversy. And their operation practices on behalf of customers still have limitations under the standards of the existing Act. Particularly after Taiwan joined World Trade Organization (WTO), the market competitions faced by securities companies are not merely in Taiwan. How to achieve integrated effects under the division of professionals and sharing of resources, and further let industries have overall improvement have become the issues that all firms have to think about. The study takes the five accounting quarters, starting from the 3rd quarter of 2007 to the 3rd quarter of 2008, as the research period, and takes the securities companies subordinating to the listed and unlisted financial holdings and having remained securities for five consecutive accounting quarters as the selected samples, with a total of 14 securities companies. Their business expenses and fixed assets are taken as the input items, and the business income per person and business income are taken as the output items. Data envelopment analysis (DEA) is selected as the research approach to conduct efficiency analysis, slack variable analysis, sensitivity analysis, window analysis, and so on, in order to evaluate the business performance of the samples of securities companies.