A study on the major motives、objectives and performance of Financial Holding Company in Taiwan

• Main Authors: Tzung-lin Liu, 劉宗霖
• Other Authors: Dr.Wei-Tzen Yang
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/94029254220733020706

碩士 === 淡江大學 === 管理科學研究所企業經營碩士在職專班 === 93 === Financial holding companies were established successively in Taiwan after December 2001. In order to enlarge the scale of market, those companies executed the strategy of various acquisitions and mergers activities. Now three years past away, it is suitable to analyze those companies’ synergies created by acquisition and merger strategies. That is a motive of this study. The study adopts case analysis method, choosing the 12 of the 14 financial holding companies in Taiwan as research object. After collecting various data, and using several factor indices, such as operation、finance and market etc., We analyze and compare those data to examine whether acquisition & merger activities have created the anticipant performance and synergy or not. From the study, we found: 1.The differences of evaluation indices to performance of acquisitions & mergers activities between scholars and managers. First, the scholars focused on change in shares、cost and profit of companies, but managers emphasized much on enlargement of economic size、market dominant power and sustained management than shares、cost and profit . Next, the scholars inclined to solve single object like as profit rate, but the companies’ managers might consider the solutions of multi-goal, multistage objects, like as market share or survival for short-term goal, market dominant power as mid-term goal, and rate of profit as long term object. The approaches of scholars and managers are different, so as the conclusions. 2.The comparison of performance evaluation financial holding companies with non-financial holding companies. By comparing 19 performance indices, it is found the performance of the financial holding company is higher than the non- financial holding company. 3.The comparison of competing power among domestic financial holding companies. The bigger the asset of company the stronger the ability of making, and it is easy to rank in top 5 to ensure advantage. The special features of the top 5 financial holding companies are depending upon the combination of insurance company and bank, or the combination of non-congeniality banks to produce the synergy. Another feature is to have the international point of view, with the strong attempt of developing bank of global scale. 4.Statistical analysis of questionnaire about issues after merging of companies. In the seven items, the affirmative answers from the personnel of the performance top six ranking banks are much more than that from the bottom six ranking banks. It is shown the top six ranking banks have more approbation on the issues like as payroll system of employee becoming consistent after merger of banks、change of position and works be carried out after merging, the new corporation vision be supported and the new leadership team be organized. The results indicate three issues mentioned above are helpful to increase the performance of company. The bottom 6 ranking banks had more approbation on the issues like as the employees are laid off during merger process and the employees are leaving the company automatically. The responses indicate these two issues have negative impact on the performance of company.