Chi-Chun Liu

Balanced Performance Index and Its Implications: Evidence from Taiwan's Commercial Banks

Taking into account only financial factors does not provide complete information on performance. This paper takes into consideration of both financial and non-financial performances when evaluating 35 sampled publicly traded commercial banks in Taiwan. The performance of banks is measured using an indexing method consisting of financial and non-financial measures. Banks are classified into two categories according either to the year founded, or to the type of major stockholders of a bank when founded.The results show that privatized government-owned/old banks are larger than private/new banks, respectively. Moreover, privatized government-owned banks have significantly higher financial performance index than private banks but both types of banks are not significantly different from each other in non-financial performance index. New and old banks are not significantly different from each other in both financial and non-financial performance indexes.With relatively large scale, higher profitability and better management, banks will perform relatively better among competitors in the following year. Furthermore, non-financial factors are important predictors of future financial and total performance indexes, though individual factor may not be consistently significant.More branch offices, better capital structure and solvency, and higher rates of growth in deposits and loans all result in more profits, and lead to higher customer satisfaction and more efficient management. Providing better technology to customers is an efficient way in promoting customer services, which in turn produces more profits and results in efficient management. CEOs, on average, have plans for better management and more profits.Among the factors that have direct and positive impacts on profitability, increasing the efficiency of management is the most efficient way. On the contrary, adding more branch offices contributes the least profits. Therefore, to increase bank profits, CEOs should aim to improve bank management, capital structure and solvency, rather than to add more branch offices.

The Signaling Effect of Open-Market Block Share Repurchase Announcements

大量買回為我國獨特之法令規範，本研究探討大量買回宣告之信號發射效果和信譽指標。本研究發現，當公司買回股份和金額重大時、市場產生正向之股價反應。當公司首次宣告大量買回時，市場亦產生正向之股價反應，但多次大量買回宣告之首次正向股價反應較單次大量買回宣告來得大。本研究亦發現前期大量買回宣告可能和宣告次數對本期宣告買回股份之市場反應具顯著正向影響，此一結果表示市場認同公司前期宣告之大量買回資訊，可作為本期股票買回宣告之信譽指標。

Basu（1997）盈餘不對稱及時性觀念下，盈餘落後反應對穩健性比較之影響

This paper examines the effect of earnings lags on estimating and comparing the extent of conservatism based on Basus (1997) asymmetric timeliness concept. Based on earnings lags and earnings asymmetry, as well as the interaction between these two; we assert that any comparisons of the extent of conservatism should take the magnitude of both concurrent and cumulative asymmetric timeliness into consideration. The length of recognition lag should also be considered. In the present study, we construct a multi-period model to capture lags in earnings response to good news, as well as to bad news. We predict that positive asymmetric timeliness exists in the current period and with short lags. We also predict that asymmetric timeliness turns negative as lags increase. Using a sample of 74,550 U.S. non-financial and non-utility firm-years, empirical results are consistent with our predictions. Results are also robust to several changes in model and sample specifications.

Motivations for Bank Decision on Financial Asset Securitizations

The creation of innovative structures of financial asset securitization (hereafter securitization) provides banks with a new avenue to operate businesses by breaking the vertically integrated intermediation process into distinct steps. In contrast to their traditional role as intermediaries between borrowers and investors, banks can evaluate which steps in the securitization process they possess the competitive advantage and focus on a limited number of roles. In view of the current and potential growth of securitizations, whether to engage in securitizations and on what extent, thus, have become an important business policy choice in banking industry. As the first country introducing securitizations, the U.S. has the largest securitization market with 7.2 trillion outstanding volume of securitizations at the end of 2004 in the world. Thus, this study empirically investigates the motivations of U.S. bank holding companies for securitizations and sheds light on the widespread use of securitizations in banking industry. Our findings present that comparative advantages, liquidity needs, capital requirements, and enhanced income are the potential aspects driving banks in loan origination to securitize.