Huang, Hao. 2010. Essays
On Firms Behaviors And Efficiencies. Doctoral Dissertation, Cornell
University.
In Chapter 1, we study the
relationship between the target value creation and acquirer corporate
governance measures. We show that, based on the 2-day, 5-day and 10day
announcement windows, the targets acquired by companies with more antitakeover
provisions (ATP) experience higher announcement returns. We also study the link
between acquirer’s corporate governance measure and net synergistic effects on
the capital market. We find that high-ATP acquirers engage in mergers that are
not only destructive to their own firm values, but as a whole high-ATP
acquirers also on average make acquisitions that yield lower net synergistic
values. We also study the acquirer returns to confirm MWX’s results. Lastly, we
examine the impacts of Gindices on combined company’s value changes in
asymmetric windows, and we find the breakeven G-indices under which the net
synergistic effects tend to be positive for different windows. In Chapter 2, we
examine the relationship between various types of market shares and net
interest margins in the Taiwanese banking industry. The study uses previously
untapped Taiwanese banking data with more than 5000 observations and three
model specifications over a 19-year span. The results show that the market
shares have positive and statistically significant impacts on net interest
margins for most aggregate samples. But the results also show that as the
banking industry became saturated and banks began engaging in pricing wars and
risky lending, the deposit and branch market shares have had negative impacts
on bank spreads since 2001. The credit lending market share became a much more
important factor for profitability; it was less important before around 2001
because (non-collateralized) credit lending was not as prevalent, and the
market for credit cards or cash cards, which yield higher interest rates, was
small. The results support the argument for further industry consolidation to
build healthier and larger financial institutions.
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