Derivatives, Capital Adequacy and Corporate Performance- The Study of the US Bank Holding Company

• Main Authors: Kuei Lin Chiang, 江奎霖
• Other Authors: S. Y. Wen
• Format: Others
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/96166804740177987222

碩士 === 長庚大學 === 工商管理學系 === 99 === This paper examines the operation of financial derivatives by US bank holding companies from the first-quarter of 2005 to the third-quarter of 2009. Using the Federal Reserve Bank of Chicago Bank Holding Company Database, the samples are 488 bank holding companies. Among them, 222 bank holding companies have operated derivatives, and 266 bank holding companies have not operated derivatives. There will be three empirical studies in this research, including the influence of derivatives operating on corporate performance, the influence of derivatives operating on capital adequacy ratio and what elements affect the probability of derivatives operating in bank holding companies. The findings suggest that bank holding companies operate derivatives will reduce the core capital adequacy ratio, and will not promote the corporate performance. After experiencing the financial storm in the fourth-quarter of 2007, the capital adequacy ratio and ROA of American bank holding companies are worse than before. The bank holding company with bigger size of asset and equity have the higher probability of derivatives operating.