Profit Performance of Financial Holding Companies: Evidence from Taiwan
نویسندگان
چکیده
The paper aims to examine the determinants of profit performance of financial holding companies (FHCs) using panel data for the period 2001–9. The effects of bankspecific ownership structure and dualcore strategy are examined. Our findings show that (1) business diversification, a lower financial cost, a higher liquidity ratio, larger assets, and lower debt ratios can improve the profit performance of FHCs; (2) the percentage of director or government ownership does not affect FHCs’ profitability, whereas foreign ownership has a significantly negative impact on FHC profitability; and (3) a dualcore strategy including banking and insurance has higher profit performance than the other strategies.
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