On the establishment and expansion of financial holding company with respect to the degree of asymmetric information

• Main Authors: Chih-Wei Chiu, 邱志偉
• Other Authors: Horace Chueh
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/98811967862298410921

碩士 === 國立高雄第一科技大學 === 金融營運所 === 96 === This research adopts event study analysis and cross-sectional study method to examine the relationship between diversification and the degree of asymmetric information in the financial holding companies. The asymmetric information is measured by illiquidity ratio and bid-ask spreads. The Herfindahl index based on the revenue and the dummy variable of the establishment and expansion of financial holding company are employed to measure the degree of diversification. The data is provided by the Taiwan Economic Journal (TEJ) and the period is from 2001/12/19 to 2007/06/30. The result shows that greater diversification of financial holding company is not associated with increased information asymmetry. Additionally, the stock market values and share turnover rates are in inverse proportion to asymmetric information. The price volatilities and growth opportunity are in direct proportion to asymmetric information.