| Summary: | 碩士 === 東吳大學 === 經濟學系 === 95 === In view of the shrinking guarantee business, unfavorable yield curve and fixed-income concentrated investment portfolio. Taiwan’s bills finance industry reported a weak pre-tax return on equity of 6.9% in year 2006, down from 11.4% in 2005. Facing increasing difficulties within the industry environment, this paper is to research the efficiency of bills finance corporations.
This thesis applies the stochastic frontier method to analyze the relative efficiency of 13 domestic Bills Finance Corporations between 2004 and 2006. The research findings are: (1) the balance of commercial paper guarantee is a positive factor to the cost function; (2) the revenue of interest is a negative factor to the cost function; (3) the newly established bills finance corporations have higher operating efficiency than that of the older ones; (4)the greater the general branches house count of a bills finance corporation, the less is its efficiency; (5)Corporations with paid-in-capital exceeding 10,000 million are less efficient than those with paid-in-capital under 10,000 million; (6)a higher capital adequacy ratio will reduce the inefficiency of a bills financial corporation.
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