The Impact of Equator Principle on the Market Return of Japanese Banks.

• Main Authors: Yih-Peng Kuo, 郭奕芃
• Other Authors: Day-yang Liu
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/67132540409830293105

碩士 === 國立臺灣科技大學 === 財務金融研究所 === 104 === The Equator Principles is a risk management framework, The implementation of the Equator Principles can improve the corporate governance, reputation of the financail institution. Currently, the Equator Principle is voluntary rules for financail institution. In Taiwan, there are Taiwan Cathay United Bank and E. Sun Bank that adopt the Equator Principles. In this study, I use event study to explore the impact of the Equator Principles on the market returm of japanese banks. The data includes 3 japanese bank and covers the years 2001-2008. I determine he event time period is 2 years.The Mizuho Bank have the positive abnormal return, but there is no statistically significant positive correlation. Sumitomo Mitsui Banking Corporation have negative abnormal return and there is no statistically significant negative correlation.The Tokyo-Mitsubishi UFJ bank have negative abnormal return and statistically significant . Howerver, The Tokyo-Mitsubishi UFJ bank imply the Equator Principles in 2005 , and the same year, they do the M&A with the UFJ Bank which had large number of bad debts. That’s why the abnormal return is negative and statistically significant . At the end , I caculate the average abnormal returns of the three banks and the result is nagative and no statistically significant.