The Influences of Bank Mergers on Stockholders’ Wealth of Banks

• Main Authors: Huai-Hsing Tung, 童懷興
• Other Authors: Ta-Cheng Chang
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/m4j4q8

碩士 === 東吳大學 === 國際經營與貿易學系 === 96 === The paper studies the influences of bank mergers on stockholders’ wealth of acquiring banks and target banks in Taiwan, especially when major courses of bank mergers are not fully controlled by market, but intervened by government. Therefore, the paper takes the mergers of Cathay United Back, Mega International Commercial Bank and Taiwan Cooperative Bank as examples and uses Event Study method, taking bank mergers declaration day as event day, selecting stock returns from (-T500 , -T30) as estimate period and (-T4 , -T4) as event periods. In addition, uses financial sector on TSEC and OTC as control group and observe AR and CAR to discuss whether there are abnormal returns on event day between acquiring and target banks, subsidiaries of financial and non-financial holding company, publicly-owned and private banks. The findings that, between acquiring and target banks, the influences of stockholders’ wealth of acquiring and target banks are positive. Between financial holding company and non-financial holding company, the influences of stockholders’ wealth of banks are positive. Finally, between publicly-owned banks and private banks, the influence of stockholders’ wealth of publicly-owned banks is positive, and the influence of stockholders’ wealth of private banks is negative.