Factors Influencing Bank Mergers and Acquisitions in Taiwan

• Main Authors: Michelle Kuan Hsuen Wang, 王冠琁
• Other Authors: Shean-Bii Chiu
• Format: Others
• Language: zh-TW
• Published: 2000
• Online Access: http://ndltd.ncl.edu.tw/handle/10125780912821827385

碩士 === 國立臺灣大學 === 財務金融學研究所 === 88 === This paper examines the probability of and the factors influencing acquisitions in the banking industry in Taiwan. Since mergers and acquisitions have rarely occurred in the local banking industry to date, this paper also examines the factors influencing the market price of banks and their price-earning ratios. We find that the deposit growth rate to be the main factor determining the probability of a bank acquiring another financial institution. A higher deposit growth rate in the past year leads to a higher probably of acquisition, and vice versa. The price of a bank''s stocks is related to its book value, earning per share ("EPS"), total outstanding loans, return on assets ("ROA"), and total capital. The price-earning ratio is related to the capital/asset ratio, earning before taxes ("EBT"), total capital and market share. These results provide some insight into evaluating the value of a target bank for acquisition.