| Summary: | 碩士 === 東吳大學 === 會計學系 === 95 === Faced with increasing complexity of financial markets in Taiwan nowadays,
making it vital to stabilize the entire finance system, by reinforcing the solidity of
local financial holding companies. Nevertheless, what lies behind the restructuring of
investment capital of the industry, is the more crucial ever-rising local economic
system. In other words, lurking behind the curtains of restructuring, are high risk
characteristics of mega-size financial holding companies, centralization of company
shares, diversification of sales operation, and “asset/debt leverage”. To the financial
holding companies themselves, with concentrated and condensed risk clusters, as well
as intrinsic management techniques, operating with available banking funds (not only
from shareholders but also the general public per say); if poor investments were
picked and low returns (or even losses) were to be reported on papers, such
consequences shall bring enormous and direct impact on the society as a whole. It is
exactly for this reason, that tighter and more efficient risk management must be
instigated, in order not to drag the entire national economy “down the drain”. Base
samples of this research study were domestic financial holding companies; by
monitoring and probing inter-connectivity of various factors, such as: company size,
interlocks, risk management, and return on investment ratio, etc. Efforts for
attempting to analyze return on investment ratio and relevant financial stability were
executed; duration of the study lasted for 3 consecutive calendar years (2003-2005).
The major findings of this research are as follows
1. Size of company was in direct and parallel link with performance proficiency;
however, interlocks were in counter-clockwise relationships with performance
proficiency.
2. The more effective risk management executed, the better performance
proficiency was apparent.
3. No interlock was unanimously concluded, concerning the relationship between
structure of Board of Director and credit risk.
4. By increasing proportional ratio of company-own investment capital vis-à-vis
risk/asset volume, more appropriate and higher performance will be ensured.
Such business practice shall as well guarantee “financially healthier” operations,
stronger capability to deal with losses in more responsive manners. With tighter
and encompassing risk management controls, domestic financial markets shall
enjoy more solid and sound development in future.
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