The Effects on Credit Ratings and Market Share of Financial Institution after Joining Financial Holding Company

碩士 === 東吳大學 === 會計學系 === 93 === The legislation of Financial Holding Company Law relaxed the restrictions of the cross running business of the financial institutions. The financial industries can establish a financial holding company to own different financial subsidiaries. Financial subsidiaries cr...

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Bibliographic Details
Main Authors: Chia-Mei Chen, 陳佳梅
Other Authors: Chun-Wen Jung
Format: Others
Language:zh-TW
Published: 2005
Online Access:http://ndltd.ncl.edu.tw/handle/40156554839797911520
Description
Summary:碩士 === 東吳大學 === 會計學系 === 93 === The legislation of Financial Holding Company Law relaxed the restrictions of the cross running business of the financial institutions. The financial industries can establish a financial holding company to own different financial subsidiaries. Financial subsidiaries create operating performance and promote the ability of competition through common marketing, operating places, operating facilities, operating staff, information alternative manipulation, and products combination. For this reason, this study will discuss whether financial holding company can increase market route and promote market share through cross running business and cross selling. The credit ratings corporation considers not only quantitative but also qualitative information when rating the issuers of the securities. The credit ratings corporation will offer a simple sign that represents the credit strength after professional rating. Therefore this study will discuss whether the subsidiaries of financial holding company can promote market position through cross selling, or obtain the supports of financial holding company to increase the financial ability, so that the credit ratings corporation promotes the level of the credit ratings. We investigated the differences between the subsidiaries of financial holding company and those of the non- financial holding company with Mann-Whitney U Test and Wilcoxon Singed-Rank Test. We used bank, bill, security, and insurance corporations from 2000 to 2004 as samples, except market share of insurance corporations from 2000 to the third quarter of 2004. This study found that the “security” subsidiaries promoted apparently both in term of market share and credit ratings. The “bill” subsidiaries didn’t promote significantly both in term of share market and credit ratings. The “bank” subsidiaries promoted apparently in term of share market, but not credit ratings. The “product insurance” subsidiaries promoted apparently in term of share market, but “life insurance” subsidiaries didn’t. The “insurance” subsidiaries didn’t promote significantly in term of credit ratings.