TO JOIN OR NOT TO JOIN? DO BANKS THAT ARE PART OF A FINANCIAL HOLDING COMPANY PERFORM BETTER THAN BANKS THAT ARE NOT?
This study compares the performance of banks that are part of a financial holding company (FHC banks) with that of banks that are not (independent banks) using Taiwan data from 2002:Q1 to 2006:Q2. The comparisons are based on 14 performance ratios resulting from the concept of CAMEL (which is an acr...
| Publicado en: | Contemporary Economic Policy Vol. 30; no. 1; pp. 113 - 129 |
|---|---|
| Autores principales: | , |
| Formato: | Artículo |
| Publicado: |
Wiley-Blackwell
Jan2012
|
| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=70117410&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 70117410 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 10743529 CEY jtl: Contemporary Economic Policy issn: 10743529 maglogo: Y pubinfo: dt: Jan2012 vid: 30 iid: 1 pid: 480 pub: Wiley-Blackwell artinfo: ui: 70117410 10.1111/j.1465-7287.2010.00205.x ppf: 113 ppct: 16 formats: fmt: @attributes: type: P size: 526KB tig: atl: TO JOIN OR NOT TO JOIN? DO BANKS THAT ARE PART OF A FINANCIAL HOLDING COMPANY PERFORM BETTER THAN BANKS THAT ARE NOT? aug: au: SHEN, CHUNG-HUA CHANG, YUAN affil: Shen: Department of Finance, National Taiwan University, Taiwan. Phone 886-2-33661087, Fax 886-2-83695817, E-mail Chang: Department of Banking and Finance, Tamkang University, Taiwan. Phone 886-2-26215656/3520, Fax 886-2-26214755, E-mail su: Banking industry Financial institutions Performance evaluation Data analysis Profitability Industrial efficiency Liquidity (Economics) sug: subj: Banking industry Savings Institutions Other Depository Credit Intermediation Personal and commercial banking industry Commercial Banking Consumer Lending Central credit unions Financial Transactions Processing, Reserve, and Clearinghouse Activities Financial institutions Performance evaluation Data analysis Profitability Industrial efficiency Liquidity (Economics) ab: This study compares the performance of banks that are part of a financial holding company (FHC banks) with that of banks that are not (independent banks) using Taiwan data from 2002:Q1 to 2006:Q2. The comparisons are based on 14 performance ratios resulting from the concept of CAMEL (which is an acronym for Capital adequacy, Asset quality, Management efficiency, Earnings ability, and Liquidity sufficiency). To ensure that becoming part of an FHC is a random process, we used four matching methods to select the controlled banks so that the characteristic variables of banks in the two groups are statistically indifferent. By using the data before matching, it was found that FHC banks significantly defeat independent banks, regardless of their performance ratios. Conversely, when the sample was used after the matching, the results changed dramatically. Although FHC banks still beat the independent banks in terms of capital adequacy, asset quality, and liquidity sufficiency, FHC banks and independent banks are found to have equal profitability and management efficiency. Earlier studies that do not consider the endogeneity problem tend to overestimate the joining effect.( JEL C21, G21) pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
|---|