The Impact of Political Connection and Corporate Governance on Bank Efficiency

• Main Authors: TSAI, PEI-YUN, 蔡佩芸
• Other Authors: Liang, Lien-Wen
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/xuughg

碩士 === 中國文化大學 === 財務金融學系 === 105 === There were literature covered a topic that some enterprises utilized political connection as a strategy to enhance performance. Some scholars pointed out that political connection will have a negative impact on corporate performance. However, the past studies concentrated on the impact of political connection on the performance of the non-financial industry, but very few literature on studied about financial industry. Therefore, this paper attempts to use the stochastic frontier approach (SFA) to estimate the impact of variables, political connection and corporate governance, on bank cost efficiency. Also, the differences between the cost efficiency of the financial-holding banks and the independent banks are compared using stochastic metafrontier approach (SMF). This study found that, first of all, political connection can improve the efficiency of banks in both finance holding banks and independent banks. Second, the study found that the size of the board of directors have different effects on financial holding bank and independent banks. The higher the number of board of directors meetings, the lower is the cost efficiency; the increase in the independent directors of the financial-holding bank has also failed to increase efficiency to banks. Third, the directors with different specialties haven’t impacts on financial holding bank; but have a significant impact on independent banks. Finally, the study found that the independent banks were less efficient during the financial crisis. In 2010, the European debt crisis for financial holding banks or independent banks have caused loss. After 2014, the financial holding bank's efficiency was gradually better than the independent banks.