Back to Search Start Over

Corporate Governance and Mergers and Acquisitions Performance in Banks: Evidence under the Special Regulatory Environment in Taiwan

Authors :
Ying-Maw Teng
Chien-Chi Chu
Hsiu-Ling Lee
Source :
Emerging Markets Finance and Trade. 52:2309-2320
Publication Year :
2016
Publisher :
Informa UK Limited, 2016.

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.

Details

ISSN :
15580938 and 1540496X
Volume :
52
Database :
OpenAIRE
Journal :
Emerging Markets Finance and Trade
Accession number :
edsair.doi...........84237c3533609841c40ec3b79efeef82
Full Text :
https://doi.org/10.1080/1540496x.2015.1103120