Ownership Effects on Bank Performance
Date Issued
2011
Date
2011
Author(s)
Wang, Chi-Chun
Abstract
Using a panel of 36 Taiwanese banks over the 2000-2009 periods, we access the effects of bank ownership on performance. Our model refers to Berger et al. (2005), which conducted a joint analysis to examine the static, selection and dynamic effects of various ownership types or changes on bank performance. Our results indicate that:
(1). pan-public banks have no significant difference on performance from private banks.
(2). banks undergoing a domestic acquisition outperform those that don’t; in contrast, banks undergoing a foreign acquisition or invested by foreign equities record poor performance than those that don’t. This means banks which are capable of acquiring others perform better while banks which government permits foreign banks to acquire or foreign equities to invest in perform worse.
(3). banks undergoing a domestic acquisition perform well in the short-run but deteriorate in the long-run; in contrast, banks undergoing a foreign acquisition or invested by foreign equities perform poor but get better in the long-run.
Subjects
ownership
bank performance
static effect
selection effect
dynamic effect
Type
thesis
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