The impact of industrial cluster effect and diversification the performance of finance holding companies.

• Main Authors: Shu-Chen Ku, 顧淑珍
• Other Authors: 作者未提供
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/32040099511786885823

碩士 === 銘傳大學 === 財務金融學系碩士在職專班 === 100 === This article focused on the financial holding companies in Taiwan to study the impact of cluster effect on financial industry and diversification of the company to the stock price performance of financial holding companies. Meanwhile, use this model to verify the hypothesis of structure-behavior-performance from the market power theory. From the perspective of industrial cluster, the curve on financial holding industry has a declined followed by upraised trend in the past decade. The sub-industry such as securities and banks were mostly under smaller clusters. Meanwhile, when financial holdings focus on insurance as their core business, their revenue weight often represent more than 90% of overall financial holdings. On the other hand, when securities were the core business, then the revenue weight is only 40% to 60%. In conclusion, when the absolute competitiveness of the subsidiary of financial holding company is higher, the stock of the financial holding company has a higher absolute return rate. Among them the impact to the subsidiary of security companies is greater than the subsidiary of insurance companies; while the subsidiary of insurance companies is better than the subsidiary of banks. When comparing the excess return, only the absolute competitiveness from the subsidiary of insurance company will have positive impact to the return of stock price for financial holdings. Similarly, when reviewing the interactions from the industrial cluster, only the subsidiary of insurance companies has been affected. Therefore, in the past ten years the development of subsidiary of insurance companies has most profound impact to the performance of financial holding companies.