Market Reactions to the Passage of the Financial Holding Company Act in Taiwan

20 Pages Posted: 8 Oct 2008

See all articles by Jane-Sue Wang

Jane-Sue Wang

Ming Chuan University - Department of Economics

Jing-Twen Chen

affiliation not provided to SSRN

Pin-Huang Chou

National Central University

Abstract

We examine how financial institutions react to various events surrounding the passage of Taiwan's Financial Holding Company Act in June 2001. Empirical results indicate that the financial system experiences significant abnormal returns along the legislative process. Smaller firms have significantly higher abnormal returns, thus lending no support for the hypothesis that larger firms benefit more from the Act. Further analysis shows that the significance of market value is replaced by a significant securities industry effect, thereby consistent with the observation that Taiwan's securities firms are generally smaller in market values and are potential target firms for financial holding companies.

Suggested Citation

Wang, Jane-Sue and Chen, Jing-Twen and Chou, Pin-Huang, Market Reactions to the Passage of the Financial Holding Company Act in Taiwan. Pacific Economic Review, Vol. 13, Issue 4, pp. 453-472, October 2008, Available at SSRN: https://ssrn.com/abstract=1280455 or http://dx.doi.org/10.1111/j.1468-0106.2008.00412.x

Jane-Sue Wang (Contact Author)

Ming Chuan University - Department of Economics ( email )

5 De Ming Rd.
Gui Shan, Taoyuan County 328
Taiwan

Jing-Twen Chen

affiliation not provided to SSRN

Pin-Huang Chou

National Central University ( email )

Department of Finance
Taoyuan, 32001
Taiwan
886-3-4227151 ext 66270 (Phone)
886-3-4252961 (Fax)

HOME PAGE: http://mgt.ncu.edu.tw/~choup

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
2
Abstract Views
512
PlumX Metrics