The Study of the Performance in the Financial Industry - An Economic Value Added Approach

• Main Authors: Ruei-Sheng Chen, 陳瑞盛
• Other Authors: Chung-Chun Wu
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/41480301829963892766

碩士 === 國立宜蘭大學 === 經營管理研究所碩士班 === 96 === The traditional financial performance factors were widely applied to examine the operational performance of banks. They didn’t include complete capital cost of corporation. Therefore, they could not present the real performance of banks fully. In order to present real performance of banks fully, the purpose of this study attempted to use the Economic Value Added（EVA） approach to examine banks’ performance. Moreover, this study also examined the relationship between EVA and the traditional performance index with CAMELS rating system and the major factors of business growth. The sample of this study was 23 banks which had been listed in the TSE and OTC in Taiwan during 2001 to 2006. This study used EVA to evaluate the banks’ operational performance. According to the factors of the operational scale, the new banks, and the financial holding companies, this study respectively divided the sample banks into several groups. Finally, the random effects model of Panel Data was used to analyse the relationship between EVA and traditional performance index. From the empirical results, the banks must be focused on earnings ability and liquidity firstly. Especially, the interest revenue to annual average loans ratio and liquid reserves ratio which had significant effects to EVA in all examinations. The capital adequacy ratio, non-performing loans ratio, loans to deposits ratio and interest-rate-sensitive asset to liability ratio also had significantly effects to EVA. According to the empirical results, it found that the operational scale of the banks had significant and positive effects to the performance of the banks. Especially, the banks which had a big operational scale and they were belonged to financial holding companies had significant and positive effects to the performance of the banks.