A Study of the Announcement Effect on Financial Holding Companies in Taiwan

• Main Authors: Ming-Yu Deng, 鄧名妤
• Other Authors: Li-Hong Zeng
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/41180267024275909443

碩士 === 國立高雄應用科技大學 === 金融資訊研究所 === 93 === This paper employs a comprehensive event study analysis methodologies and standardized cross-sectional method to investigate the impact of the announcement effect on the amalgamating financial holding companies. Our empirical results show that the announcement of amalgamating financial holding companies would generate wealth effects in Taiwan. However, the wealth effect was not symmetric between the financial holding companies (acquiring companies) and the subsidiary companies (acquired companies). In response to the announcement of amalgamation, subsidiary companies (acquired companies) have significant positive abnormal returns but financial holding companies (acquiring companies) are not. Furthermore, this wealth effect was sensitive to industry. The data also indicated that, on average, the wealth effect was larger for an insurance acquiring company than for a bank acquiring company or a securities acquiring company. Through the cross-sectional regression model result show, the amalgamating type has significant different for financial holding companies (acquiring companies), for different announcement period, acquiring companies have significant different.