1. Corporate Governance and Mergers and Acquisitions Performance in Banks: Evidence under the Special Regulatory Environment in Taiwan
- Author
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Ying-Maw Teng, Chien-Chi Chu, and Hsiu-Ling Lee
- Subjects
Value (ethics) ,050208 finance ,business.industry ,Corporate governance ,05 social sciences ,Chinese financial system ,Accounting ,0502 economics and business ,Mergers and acquisitions ,Remuneration ,050207 economics ,business ,General Economics, Econometrics and Finance ,Finance ,Diversity (business) - Abstract
In this study, we focus on the relation between bank governance and bank merger results under Taiwan’s special regulatory environment in 2000. Adopting governance variables (executive remuneration, managerial ownership, and board diversity), we find that managerial ownership is positively related to bank merger results and that board size is negatively correlated with bank mergers’ performance. This study supports sound governance mechanisms to prevent banks from pursuing a value-loss merger and acquisition (M&A). Our results offer the insight that internal bank governance structures have a bigger impact on the value effects from bank mergers. Thus, regulators may elevate the performance of bank M&As by enhancing corporate governance codes.
- Published
- 2016
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