Does Financial Integration Affect Bank Value: Taiwan Evidence

• Main Authors: Yueh-Wen Lin, 林玥彣
• Other Authors: Chian-Wei Yang
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/29029277103742763705

碩士 === 雲林科技大學 === 財務金融系碩士班 === 98 === Many financial institutions in Taiwan have to seek new revenues since the deposit and loan''s financial industries were forced to reduce their interest rate due to the relaxation of laws, bank’s liberalization and excessive competition. In this study, I gathered the data from 14 Taiwan listed financial holding companies during the period from 2001 to 2009, and proceeded a method of ordinary least squares estimator( OLS )to explore the impact of diversification in assets and income. In addition, I also added distinct financial holding company as dummy variable to examine the differences among them. The empirical findings show that the diversification of assets will increase the value of whole financial holding companies and the excess value of assets , but no significant effect on income of diversification. This study also found that the excess value of income and assets had negative significantly relationship with risk, and significant positive with net interest margin. On the other hand, the entire value of financial holding companies was associated with significant and negative coefficients for risk variable, and significantly positive for debt ratio. The holding companies, giving their insurance business to first place, had accounted more explanatory power on value than other kind of holding companies.