An analysis of ownership structure, performance, and risk-taking behavior of commerical banks: evidence from Taiwan

• Main Author: 邱郁茹
• Other Authors: 李存修
• Format: Others
• Language: en_US
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/12567913486952184654

碩士 === 國立臺灣大學 === 財務金融學研究所 === 91 === This article offers the evidence on the incentive and entrenchment effects of the ultimate shareholders by analyzing the data of Taiwanese commercial banks over the three-year period, from 1999 to 2001. We find the bank performance increase and bank risk decrease with the cash-flow concentration on the hands of the largest shareholders, consistent with the hypothesis of positive incentive effect. Furthermore, the higher the degree of wedge between ownership and control right, the lower the bank performance and the higher the bank risk is found, consistent with the higher the hypothesis of entrenchment effect. These findings are relevant for corporate governance across different types of ownership, state-owned and family.