Investigation and Comparison of Operational and Financial Performances Among Financial Holding Companies

• Main Authors: Hsiang-Min Wang, 王祥閔
• Other Authors: Wen-Cheng Hsiao
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/73462649581276128054

碩士 === 銘傳大學 === 企業管理學系碩士在職專班 === 103 === Due to liberalization and high competition from international financial institutions, establishment of financial holding companies (FHCs) is the alternative for domestic banks to expand their size, to enhance competitiveness, and to improve operational efficiency. The study investigates operational efficiencies of 15 banks from FHCs by data envelopment analysis (DEA) during 2004-2013. Particularly, the study analyzes the operational efficiency in Taiwan Cooperative Bank (TCB) which is the last bank joining into the FHC system. The study also investigates both factors influencing efficiency by Tobit regression models and financial performances by DuPont equations. The results are as followed. First, the optimal operation efficiency of TCB is during 2006-2011 and it occurs from privatization and the merger with Farmers Bank. Nevertheless, efficiency is lower during 2012-2013 than the averages from other 14 bank, from the banks invested mainly by the government, and from the private banks. It indicates that operational synergy is not completed because of changes in organizational structure after joining FHC system. Second, the variables of operational patterns, corporate-loan ratio, and assets are the significant factors impacting operational efficiency. Finally, the results based on DuPont equation indicate that the findings from analyzing financial performances are consistent with those from DEA.