Using the U.S. Gramm-Leach-Bliley Financial Modernization Act ("GLBA") as a model, I argue that this act of financial reform, promulgated in November 1999, is a result of "Re-regulation", rather than "Deregulation" as suggested by most scholars. I emphasize the linear development of the GLBA, from 'regulation' to 'deregulation' and then further to 're-regulation'. This linear direction denotes sequential regulatory development that concerns the gradual relaxation of permissible banking activities, which is correspondingly marked by the Glass-Steagall Act of 1933, the Bank Holding Company Act of 1956, and the GLBA of 1999. The GLBA enabled the U.S. financial services industry to begin offering all round financial services under the single roof of the Financial Holding Company("FHC"). The GLBA's mandate is to provide the U.S. financial services industry with a level playing field and allow them to compete with their strongest rivals from th eEuropean Union. European Union banks already operate under a liberal regime, following the success of the Second Banking Directive of 1989 that embraces financial liberalization. Taiwan's Financial Holding Company Act ("FHCA"), promulgated in July 2001,owes much of its content to its U.S. counterpart, the GLBA. Taiwan's FHCA is basically modeled after the U.S. GLBA but selectively adopts parts of the E.U. model. The U.S. model is represented by the GLBA while the E.U. model is represented by the Second Banking Directive. Through cross-selling and cross-marketing, financial holding companies in the U.S. model and universal banks in the E.U. model, both can achieve economies of scale and scope. This dissertation is otherwise devoted to providing a comparative analysis on certain key elements of the U.S. GLBA and Taiwan's FHCA, although I sometimes refer to the E.U.'s Second Banking Directive. I conclude that while Taiwan's FHCs lack the economic scale of U.S. FHCs, the adoption of the U.S. model in the FHCA offers Taiwan's FHCs better fire wall protection than the E.U. model would. More generally speaking, there are pros and cons to Taiwan's adoption of the GLBA. The GLBA and by extension the FHCA require its domestically established FHCs be pure holding companies, as opposed to the E. U. model which requires the parent companies (universal banks) to also be operating holding companies.

Recent trend of globalization has lead financial industry to an increasingly competitive environment. In respond to intensify market competition, mergers and acquisition (M&A) amounts financial institutions to become the strategic choice for firms to increase their market power. The trend also adds pressure on local financial institutions of Taiwan to improve their competitiveness for their global position. The result of it was the establishment of financial holding companies (FHC) to utilizes the use of resources and to achieve the economic of scale through M&A between companies. Therefore the market will weight more heavily on FHC and a tendency of continues M&A is expected for the next several years. The purpose of this paper is to analyze the performance of fourteen FCFs of Taiwan by looking their financial profitability, operating efficiency and asset quality and strategic resource allocation performance; the results are summarized as followed: 1.When look at the financial profit performance, Cathay FHC has the best performance therefore it ranks top of the list, and Chine Development FHC has the worse result and ranked at bottom of the list. 2.If look at from operating efficiency and asset quality¡¦s prospective, Chine development FHC, Taishin FHC and Shin Kong FHC are the top three amounts fourteen FHC of Taiwan. 3.To performance better in strategic performance ranking were associated with more diversified in subsidiaries of FCFs or FCFs which has less market shares. 4.In combine of the three performance measurements, Cathay FCF, Chinatrust FCF and Taishin FCF are the top three FCFs amount the fourteen and Chine Development FCF, Jin Sun FCF and Waterland FCF are rank as bottom three for their poor performance.

Using the U.S. Gramm-Leach-Bliley Financial Modernization Act ("GLBA") as a model, I argue that this act of financial reform, promulgated in November 1999, is a result of "Re-regulation", rather than "Deregulation" as suggested by most scholars. I emphasize the linear development of the GLBA, from 'regulation' to 'deregulation' and then further to 're-regulation'. This linear direction denotes sequential regulatory development that concerns the gradual relaxation of permissible banking activities, which is correspondingly marked by the Glass-Steagall Act of 1933, the Bank Holding Company Act of 1956, and the GLBA of 1999. The GLBA enabled the U.S. financial services industry to begin offering all round financial services under the single roof of the Financial Holding Company("FHC"). The GLBA's mandate is to provide the U.S. financial services industry with a level playing field and allow them to compete with their strongest rivals from th eEuropean Union. European Union banks already operate under a liberal regime, following the success of the Second Banking Directive of 1989 that embraces financial liberalization. Taiwan's Financial Holding Company Act ("FHCA"), promulgated in July 2001,owes much of its content to its U.S. counterpart, the GLBA. Taiwan's FHCA is basically modeled after the U.S. GLBA but selectively adopts parts of the E.U. model. The U.S. model is represented by the GLBA while the E.U. model is represented by the Second Banking Directive. Through cross-selling and cross-marketing, financial holding companies in the U.S. model and universal banks in the E.U. model, both can achieve economies of scale and scope. This dissertation is otherwise devoted to providing a comparative analysis on certain key elements of the U.S. GLBA and Taiwan's FHCA, although I sometimes refer to the E.U.'s Second Banking Directive. I conclude that while Taiwan's FHCs lack the economic scale of U.S. FHCs, the adoption of the U.S. model in the FHCA offers Taiwan's FHCs better fire wall protection than the E.U. model would. More generally speaking, there are pros and cons to Taiwan's adoption of the GLBA. The GLBA and by extension the FHCA require its domestically established FHCs be pure holding companies, as opposed to the E. U. model which requires the parent companies (universal banks) to also be operating holding companies.

Using the U.S. Gramm-Leach-Bliley Financial Modernization Act ("GLBA") as a model, I argue that this act of financial reform, promulgated in November 1999, is a result of "Re-regulation", rather than "Deregulation" as suggested by most scholars. I emphasize the linear development of the GLBA, from 'regulation' to 'deregulation' and then further to 're-regulation'. This linear direction denotes sequential regulatory development that concerns the gradual relaxation of permissible banking activities, which is correspondingly marked by the Glass-Steagall Act of 1933, the Bank Holding Company Act of 1956, and the GLBA of 1999. The GLBA enabled the U.S. financial services industry to begin offering all round financial services under the single roof of the Financial Holding Company("FHC"). The GLBA's mandate is to provide the U.S. financial services industry with a level playing field and allow them to compete with their strongest rivals from th eEuropean Union. European Union banks already operate under a liberal regime, following the success of the Second Banking Directive of 1989 that embraces financial liberalization. Taiwan's Financial Holding Company Act ("FHCA"), promulgated in July 2001,owes much of its content to its U.S. counterpart, the GLBA. Taiwan's FHCA is basically modeled after the U.S. GLBA but selectively adopts parts of the E.U. model. The U.S. model is represented by the GLBA while the E.U. model is represented by the Second Banking Directive. Through cross-selling and cross-marketing, financial holding companies in the U.S. model and universal banks in the E.U. model, both can achieve economies of scale and scope. This dissertation is otherwise devoted to providing a comparative analysis on certain key elements of the U.S. GLBA and Taiwan's FHCA, although I sometimes refer to the E.U.'s Second Banking Directive. I conclude that while Taiwan's FHCs lack the economic scale of U.S. FHCs, the adoption of the U.S. model in the FHCA offers Taiwan's FHCs better fire wall protection than the E.U. model would. More generally speaking, there are pros and cons to Taiwan's adoption of the GLBA. The GLBA and by extension the FHCA require its domestically established FHCs be pure holding companies, as opposed to the E. U. model which requires the parent companies (universal banks) to also be operating holding companies. / Law, Faculty of / Graduate

The vigorous development of the internet has enabled e-commerce to take the world by storm, and in comparison with other industries, the security industry adopts information technology earlier and has relatively profound application compared to other industries. Facing the rapid changes of the market environment and high competitiveness, enterprises must establish unique competitive strategies in order to survive and keep growing; it is essential for companies to create competitive advantages.From 1988, new security firms were allowed to enter the domestic stock market and accompanied by the bull market, new securities firms sprang up like mushrooms in Taiwan. After mergers, acquisitions and the rise and fall of the stock market, Taiwan¡¦s government implemented the ¡§Financial Holding Company Act¡¨ in 2001; under this Act, financial holding companies can simultaneously provide comprehensive financial services, such as securities, bank and insurance. While the development of the financial market continues to become more diversified, international and larger, the domestic financial sector faces huge changes leading to the situation where philosophy: ¡¥the bigger, the stronger¡¦ prevails. The study takes ¡§S securities firm¡¨ as an example and utilizes its actual securities business to carry out a case study. While facing the rapid changes of international finance and high competitiveness, how a securities firm adopts the resource-based view (RBV), experiences future development and increases its competitive advantages, is examined. Through the data study of related industries, investigation of literature and theories and SWOT analysis, this study aims to understand the possible development and management strategies of e-brokers to increase enterprise competitiveness and market share, and achieve the goal of sustainable management. Joining financial holding company can possess several advantages, but it is not the only possible development for securities firms. During the times of low interest rate, any new financial instruments are easy to attract the attention of investors. Moreover, while competing against so many tough contestants, if securities firms can master the crucial competitive advantages and make a good use of them, the crisis might be a turning point. The study aims at analyzing small securities firms; while dealing with the management difficulties, they strengthen their competitiveness by improving service quality, building strategic alliance, carrying out customer-level analysis, creating a trustworthy investment environment, implementing diversification management, recruiting excellent talents, etc., in the hope of enhancing a steady and vigorous development for E-broker business.

Summary With the implement of 'The Law of Financial Holding Company(FHC) ¡§, 14 FHCs which have advantages such as huge fund and extensive marketing channel were established successively at the end of the year 2001. In spite of the legality of managing across industries, the FHC still cannot make consumers understand what the Financial Holding means. According to the chaos of the recognition about the FHC brand, this research intends to examine the internal FHC in order to study how the parent company manages the subsidiary¡¦s brand. At the same time, basis on the concept of internal marketing from service industry, this research also studies the way of subsidiary¡¦s internal marketing. This research adopts the qualitative method and quantitative method. In the qualitative interview, we collect the management concepts about the parent company operating the brand identity. In the quantitative statistics, we examine the employee¡¦s identity degree about the brand and internal marketing in the subsidiary to conclude the outcome of internal marketing system. The following are the discoveries of this research: First¡BBrand Identity System of FHC 1. The FHC adopts the way ¡§top down¡¨ to plan the group's brand, and the subsidiary does not participate in actual decision . 2. Whether the subject organization of FHC exists or not determines that structure of group's brand identity. 3. The comprehensive of Brand Identity is the synergistic outcome while the FHCs merge. Second¡BBrand communication of FHC 1.Changing the name of financial industry or group itself will accelerate the process of brand outside. 2.The advertising benefit determines the outside advertising subject of brands. 3. Inside brand information is transmitted through the application system and entry website of FHC. Third¡BManage the relation between organization culture and brand. 1. The combine of brands didn¡¦t affect organization culture of every subsidiary which operate independently . 2. Organization culture will influence the benefit of group¡¦s brand in the future. Fourth¡BManage the relation between market condition and brand The parent company pays attention to the subsidiary original profession under group's brand . Fifth¡BInternal marketing system and brand identification 1.It is having dependence and influence that inside internal marketing and brand identification. 2.Individual variables are not obviously correlated with the consciousness degree of internal marketing and brand identification 3.The average of Internal marketing and brand identification of Cathay United Bank and Chiao Tung Bank is lower than another subsidiary of FHC in this study. In a word, the parent company have to establish management style to enlarge the power of brand elements; and subsidiary must strengthen internal marketing system to make higher brand identification of all employees.

During the past five years, fourteen financial holding companies have been founded by stock for stock mergers corresponding to the policies and deregulations in Taiwan. Among these M&As transactions, the exchange ratio for each combination, which is determined by the reported earnings in both acquiring and acquired firms, affects the success of the merger most. Therefore, our research focuses on whether financial institutions manage their reported earnings in order to get more favorable price for maximizing their shareholders’ wealth. From empirical results in Taiwan’s banking industry, we find (1) that the degree of earnings management is much higher in the period prior to M&As announcements given financial institutions in Taiwan are used to manipulating earnings at usual times, (2) that those financial institutions with higher degree of earnings management indeed get more favorable exchange ratios within M&As transactions relative to those with lower degree of earnings management for both acquiring and acquired companies. We also make an investigation for investors’ reactions toward behaviors of earnings management. By focusing on the sample of Taiwan’s financial holding companies, empirical results show that market investors will not punish those financial institutions obtaining better exchange ratios by manipulating reported earnings in the market since they can’t see through managers’ tricks on reported earnings.

Abstract To integrate the operating ability and to enhance the operating efficiency of financial institutions, the government of Taiwan promulgated the act of financial holding company in June 2001. Fourteen licenses of financial holding company have been issued since then and the purpose of forming financial holding companies is to increase their international competitiveness which is important to Taiwan since she has become a member of WTO. Among those 14 financial holding companies they are different in scales, in operating strategies and in operating performances. Can those small-scaled financial holding companies survive in the market with increasing competitiveness? Should they merge with other large scaled financial holding companies? The purposes of this thesis are to analyze the previous two questions. In other words, we examine the impact of the Act on the operating strategy and performance of two small-scaled financial holding companies: Jin Sun and Waterland financial holding companies. To address the second issue mentioned previously, we also analyze the operating strategies and performances of the Fubon financial holding company, which is known as having the advantage of stores and branches and of marketing financial products. Our research provides critical operating strategies for Jin Sun and Waterland financial holding companies to enhance their operating performances.

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