How banks dealing with bad loans matter ？ The empirical evidence from long-term stock performance.

• Main Authors: Wen-Kai Chen, 陳文凱
• Other Authors: Sheng-Yung Yang
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/35565638058823334532

碩士 === 國立中興大學 === 高階經理人碩士在職專班 === 96 === With the financial market becoming more and more globally and liberally, the competition between financial institutions is also becoming more severely. Financial institutions is facing bad loans problem in Taiwan. Bad loans will cause lots of damages to bank financial reports. If banks can deal with bad loans problems well, it will help banks financial structure becoming better. This paper is researched with event study method. We want to know that when financial institutions are making an announcement of dealing with bad loans, whether this kind of information effect financial institutions’ stock price. Our result shows that managing bad debt and non-performing loans will cause two different kind of result. When making bad debt management, this information will cause positive long-term abnormal stock price return performance. In the other hand, non-performing loans management will cause negative abnormal long-term stock price return performance. Key Words : event study、bad debt、Non-performing Loans、abnormal return、Long-term performance