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Author: Sirapada Punyavansiri
Sirapada Punyavansiri
Thesis Title: Merger and Acquisition performance of Taiwan and Thai Banking Sector: A Comparative Study between Taiwan and Thai Bank
Merger and Acquisition performance of Taiwan and Thai Banking Sector: A Comparative Study between Taiwan and Thai Bank
Advisor: 謝劍平
Joseph C.P. Shieh
Committee: 劉代洋
Day-Yang Liu
陳俊男
Chun-Nan Chen
Degree: 碩士
Master
Department: 管理學院 - 財務金融研究所
Graduate Institute of Finance
Thesis Publication Year: 2020
Graduation Academic Year: 108
Language: 英文
Pages: 43
Keywords (in Chinese): Mergers & Acquisitions (M&A)Banking performanceComparative studyPaired Sample T-testTaiwanThailand
Keywords (in other languages): Mergers & Acquisitions (M&A), Banking performance, Comparative study, Paired Sample T-test, Taiwan, Thailand
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  • This paper was designated to examine the performance of mergers and acquisitions based
    on Thai and Taiwan banking sectors listed in the stock exchange from 2009 to 2018. Using
    a total of 7 listed banks in Thailand and Taiwan following 7 mergers deal from each
    country. This research will also include a comparative analysis of the performance between
    Bangkok Bank PCL and Taiwan Cooperative Financial Holding. For evaluating the
    performance of pre and post mergers and acquisitions, significant ratios like Return on
    equity, Return on total assets, Net Interest Margins, Liquidity ratios, Solvency ratio, and
    Efficiency ratios was used. Furthermore, this finding was an aim for both Thai and
    Taiwanese firms to have a piece of knowledge about mergers and acquisitions performance
    of each country to improve efficiency in their investment decision. This research could be
    a bridge that links both countries together in the future.


    This paper was designated to examine the performance of mergers and acquisitions based
    on Thai and Taiwan banking sectors listed in the stock exchange from 2009 to 2018. Using
    a total of 7 listed banks in Thailand and Taiwan following 7 mergers deal from each
    country. This research will also include a comparative analysis of the performance between
    Bangkok Bank PCL and Taiwan Cooperative Financial Holding. For evaluating the
    performance of pre and post mergers and acquisitions, significant ratios like Return on
    equity, Return on total assets, Net Interest Margins, Liquidity ratios, Solvency ratio, and
    Efficiency ratios was used. Furthermore, this finding was an aim for both Thai and
    Taiwanese firms to have a piece of knowledge about mergers and acquisitions performance
    of each country to improve efficiency in their investment decision. This research could be
    a bridge that links both countries together in the future.

    LIST OF CONTENTS ABSTRACT…………………………………………………………………………..i ACKNOWLEDGEMENTS…………………………………………………………..ii LIST OF CONTENTS……………………………..…………………………………iii LIST OF TABLES……………………………..……………………………………..iv LIST OF FIGURES……………………………..…………………………………....vii CHAPTER 1: INTRODUCTION 1.1 Research Background……………………………………………………………........1 1.1.1 Global Banking Industry……………………………………………………….........1 1.1.2 Taiwan Banking Industry……………………………………………………………1 1.1.3 Taiwan M&A………………………………………………………………………..5 1.1.4 Thailand Banking Industry………………………………………………………….7 1.1.5 Thailand M&A……………………………………………………………………..10 1.2 Research Objectives…………………………………………………………….........11 1.3.Structure of the research……………………………………………………………..12 CHAPTER 2: LITERATURE REVIEW 2.1 Overview of Mergers & Acquisitions………………………………………………..13 2.1.1 Definition……………………………………………………………………..........13 2.1.2 Advantages and Motives of M&A…………………………………………………14 2.1.2.1 Synergy…………………………………………………………………………..14 2.2 Approaches to analyze the effects of merger and acquisition………………………..15 iv 2.2.1 Accounting approach………………………………………………………….....15 2.2.1.1 Profitability Ratio…………………………………………………………….15-16 2.2.1.2 Liquidity Ratio…………………………………………………………………16 2.2.1.3 Risk Ratio………………………………………………………………………16 2.2.1.3 Efficiency Ratio………………………………………………………………16-17 2.3 Comparative Analysis………………………………………………………………17 CHAPTER 3: METHODOLOGY 3.1 Data Collection…………………………………………………………………........19 3.2 Methodology…………………………………………………………………………22 3.2.1 Measurement of banks financial performance……………………………………..22 3.2.1.1 Profitability Ratio…………………………………………………………….22-23 3.2.1.2 Liquidity Ratio…………………………………………………………………..23 3.2.1.3 Risk Ratio………………………………………………………………………..23 3.2.1.4 Efficiency Ratio…………………………………………………………….........23 3.3 Data Analysis……………………………………………………………...................23 3.3.1 Descriptive and Statistical Analysis…………………………………………..........23 3.3.2 Normality Test……………………………………………………………..............24 3.4 Hypothesis……………………………………………………………..................25-26 v CHAPTER 4: RESULTS & ANALYSIS 4.1 Descriptive statistics……………………………………………………………....27 4.2 Paired Sample T-test………………………………………………………………29 4.2.1 Profitability Ratio…………………………………………………………….29-30 4.2.2 Liquidity Ratio……………………………………………………………..........31 4.2.3 Risk Ratio……………………………………………………………..................32 4.2.4 Efficiency Ratio……………………………………………………………........33 4.3 Comparative Analysis……………………………………………………..............34 4.3.1 Taiwan Cooperative Bank……………………………………….........................34 4.3.2 Bangkok Bank………………………………………...........................................35 4.4 Comparative analysis………………………………………...................................36 4.4.1 Descriptive Statistics for Comparative Analysis………………………………...36 4.4.2 Paired sample T-test for Comparative Analysis…………………………………36 CHAPTER 5: CONCLUSIONS 5.1 Hypothesis Conclusion…………………………………………………………….36 5.2 BBL and TCB comparison…………………………………………………………40 5.3 Research Limitations……………………………………………………………….41 5.4 Research Recommendations……………………………………………………......41 vi LIST OF TABLES Table 1: Comparison of Banking Industry — Taiwan versus Peers (2017)....................2 Table 2: Major Events and M&A in Taiwan’s Banking Sector History.......................3-4 Table 3: Major Events and M&A in Thailand’s Banking Sector History….................8-9 Table 4: M&A banks in Taiwan period 2012 - 2015…................…................…..........20 Table 5: M&A banks in Thailand period 2012 - 2015…................…................…........21 Table 6: Test of Normality in Taiwan……………………………………………….....24 Table 7: Test of Normality in Thailand………………………………………………...25 Table 8: Descriptive statistics for all ratios in Taiwan....................................................27 Table 9: Descriptive statistics for all ratios in Thailand..................................................28 Table 10: Descriptive statistics for ratios of 7 Taiwan banks…………………………..28 Table 11: Descriptive statistics for ratios of 7 Thai banks 37…………………………..29 Table 12: Paired sample T-test of profitability ratios in Taiwan......................................30 Table 13: Paired sample T-test of profitability ratios in Thai...........................................30 Table 14: Paired sample T-test of liquidity ratios in Taiwan............................................31 Table 15: Paired sample T-test of liquidity ratios in Thailand..........................................31 Table 16: Paired sample T-test of risk ratios in Taiwan....................................................32 Table 17: Paired sample T-test of risk ratios in Thailand..................................................32 Table 18: Paired sample T-test of efficiency ratios in Taiwan..........................................33 Table 19: Paired sample T-test of efficiency ratios in Thailand........................................33 Table 20: Taiwan Cooperative Bank Financial Summary.................................................34 Table 21: Bangkok Bank Financial Summary...................................................................35 Table 22: Descriptive statistics for ratios of Bangkok Bank (BBL) and Taiwan Cooperative Bank (TCB)………………………………………………………………..36 vii Table 23: Paired Sample T-test of risk ratios in Thailand………………………………36 Table 24: Hypotheses testing (Summary of Thailand and Taiwan)..................................37 LIST OF FIGURES Figure 1: Structure of Taiwan’s Financial System………………………………………5 Figure 2: M&A in Taiwan.................................................................................................7 Figure 3: Structure of Thailand’s Financial System……………………………………..9 Figure 4: M&A in Thailand….…………………………………………………………..11 Figure 5: NIM enhancement..……………………………………………………………11

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