abstract: The Chinese capital market is characterized by high segmentation due to governmental regulations. In this thesis I investigate both the causes and consequences of this market segmentations. Specifically, I address the following questions: (1) to which degree this capital market segmentation is caused by the fragmented regulations in China, (2) what are the key characteristics of this market segmentation, and (3) what are the impacts of this market segmentation on capital costs and resources allocations. Answers to these questions can have important implications for Chinese policy makers to improve capital market regulatory coordination and efficiency. I organize this thesis as follows. First, I define the concepts of capital market segmentation and fragmented regulation based on literature reviews and theoretical analysis. Next, on the basis of existing theories and methods in finance and economics, I select a number of indicators to systematically measure the degree of regulatory segmentation in China’s capital market. I then develop an econometric model of capital market frontier efficiency analysis to calculate and analyze China’s capital market segmentation and regulatory fragmentation. Lastly, I use the production function analysis technique and the even study method to examine the impacts of fragmented regulatory segmentation on the connections and price distortions in the equity, debt, and insurance markets. Findings of this thesis enhance the understanding of how institutional forces such as governmental regulations influence the function and efficiency of the capital markets. / Dissertation/Thesis / Doctoral Dissertation Business Administration 2015

[pt] O setor elétrico nos últimos anos vem passando por grandes mudanças estruturais em diversas regiões do planeta. Essas mudanças são devidas a processos de reestruturação do setor energético visando o aumento da eficiência e da qualidade. No Brasil, para este fim, foram criados órgãos responsáveis pelo setor, de modo que se viabilizem e regulamentem estas mudanças, seja por meio da criação de instrumentos de incentivos à competição ou permitindo a participação de agentes privados nos processos de geração, distribuição e comercialização de energia. Neste contexto foi criada a ANEEL (Agência Nacional de Energia Elétrica), responsável por instituir as regras de mercado de energia elétrica visando assegurar a competitividade do setor. Dentro das atribuições da ANEEL, está a realização de revisões tarifárias periódicas. Esta revisão tarifária compreende: a) reposicionamento das tarifas de fornecimento de energia elétrica em nível compatível com a preservação do equilíbrio econômico-financeiro do contrato de concessão; e b) determinação do Fator X que será aplicado nos reajustes tarifários com o objetivo de compartilhar ganhos de produtividade com os consumidores. Para determinar o Fator X é necessário medir a eficiência, o que pode ser feito basicamente através de duas alternativas: 1) comparar a empresa com fronteiras de eficiência construídas para o mercado regulado a partir de grupos de similaridade; 2) comparar a empresa com o mercado não regulado. Desta forma, o objetivo da tese é propor uma metodologia para definição de fronteiras de eficiência entre as empresas de distribuição de energia elétrica através da conjugação de redes neurais e de modelos econométricos, particularmante, os modelos de análise de fronteira estocástica. / [en] In recent years, the electric power supply sector has undergone major structural changes in a variety of regions throughout the planet. These changes are due to restructuring processes taking place in the energy sector towards the increase of quality and efficiency. In Brazil, it was created agencies responsible for the sector, in order to foster and regulate those changes, either by means of creating instruments for promoting competition or by allowing private agents participation in the processes of generating, distributing and trading energy. In this context, it was created the Brazilian Electricity Regulatory Agency (ANEEL), responsible for binding rules to assure market competition in the electric power supply sector. Among the duties of the regulatory agency of the electric power supply sector in Brazil there is the periodical revision of energy prices. Such revisions involve estimating the X Factor applied to update prices so that gains in productivity are shared with consumers. To estimate the X Factor it is necessary to measure efficiency and, for this, two issues are important: the choices of benchmarks and of techniques for productivity measurement. This thesis proposes an approach to define frontier efficiency of electric power distribution utilities based on clustering homogeneous utilities using neural networks and estimating the frontiers through econometric techniques.

本研究欲探討兩岸傳統產業公司治理與經營績效之關聯性，運用資料包絡分析法及Cummins, Weiss和Zi (1999)之交叉效率前緣評估比較2005至2009年兩岸公司之經營績效差異。並進一步採用縱橫資料迴歸模型分析兩岸傳統產業之公司治理機制與經營績效之關聯。 根據本研究實證結果顯示：首先，兩岸傳統產業分屬不同效率前緣，且大陸傳統產業之技術效率優於台灣傳統產業之技術效率。說明台灣傳統產業雖較中國傳統產業發展的時間點為早，不過由於台灣之傳統產業屬於早期赴中國投資的先驅，當時已將核心技術帶入中國，近年來中國傳統產業因內需龐大加上國家支持而發展迅速，無論在規模或產值上都遠遠超過台灣。而在公司治理機制中，大陸傳統產業公司國內機構法人持股率及國有股比例與其經營績效呈顯著顯著負向關係，和其他研究結果一致，而經理人持股率、國外機構法人持股率與獨立董事比例則與經營績效無顯著關聯；台灣傳統產業公司經理人持股率、國內機構法人持股率、國外機構法人持股率、董事淨持股率及獨立董事比例與公司之經營皆無顯著關聯。敏感性分析顯示與上述結果類似。 / The purpose of this paper is to examine and compare the relationship between corporate governance and efficiency performance of traditional industry(TI) in Taiwan and China. We apply data envelopment analysis and cross frointer analysis to measure and compare the performance difference between Taiwan and China. The research constructs a panel data regression model to examine the association between cooperate governance and efficiency performance for Taiwan and China, respectively. The empirical results are summarized as follow. First, the efficiency frontier of Taiwan and China are indeed different, and the cross frontier analysis reveals that the efficiency performance of Mainland China is better than that of Taiwan. The TI of Taiwan developed earlier than China and the early core competence development of Chians’s TI was transferred from Taiwan. However, due to the huge domestic demand and government’s strong support of China’s TI, today not only the size but also the value-added of TI, China is much larger than Taiwan. Second, the domestic institutional investor’s and the state-owned shareholdings are significantly correlated with the performance of companies in China. The management, foreign institutional investor’s shareholdings and the percentage of independent directors do not associate with the performance of China’s TI. Finally, the cooprate government variable are not associate with the performance of Taiwan’s TI.

本研究欲探討兩岸銀行業公司治理與經營績效之關聯性，使用資料包絡分析法及交叉效率分析比較2008至2013年兩岸銀行業的經營績效。根據本研究實證結果顯示：兩岸銀行業確實分屬不同效率前緣，且中國銀行業業之技術效率優於台灣銀行業之技術效率。但金融海嘯後台灣在規模效率上進步，顯著超過中國。在公司治理機制與經營績效關聯性分析中，顯示兩岸因制度性的差異上，使得公司治理變數與經營績效之關聯性幾乎完全相反。在政府持股率與經營績效關聯性上，雖然都不顯著，但中國係數為正，台灣為負，說明兩岸政府對企業的影響力是有所差異。獨立董事比例與純粹技術效率是唯一兩岸都顯著之變數，但中國為顯著負相關而台灣為顯著正相關。研究結果顯示兩岸在公司治理實務與經營績效有很大的差異。 / The purpose of this paper tries to make a cross strait comparison between corporate governance and efficiency performance in banking industry. We apply data envelopment analysis and cross efficiency frontier analysis to measure and compare the performance of banking industry between Taiwan and China from 2008 to 2013. The empirical results reveal that Taiwan and China indeed have different efficiency frontier, and the cross frontier analysis suggests that the efficiency performance of China is much better than that of Taiwan. However, the scale efficiency of Taiwan had a better performance than that of China after financial crisis. Due to system difference, the cross strait comparison of corporate governance between efficiency performances denotes that Taiwan and China almost have opposite effects. China indicates a positive coefficient between bank’s stock holding ratio by government and efficiency performances. On the other hand, Taiwan indicates a negative coefficient, although both are statistically insignificant. The result suggests that the political power has a contrary influence for Taiwan and China. The percentage of independent directors is the only variable that statistically significant with pure technical efficient on both sides. However, which is negative coefficient associated with China, but positive coefficient associated with Taiwan. Therefore, we can conclude that the corporate governance practices have opposite influence on efficiency performance between Taiwan and China.