A Study Of Structure Conduct And Performance In The Financial Industry

The purpose of this study is to discuss whether the banks which had established financial holding company can increase their management efficiency and have better management efficiency than other banks which had not established financial holding company. The samples of this study are eight banks which had established financial holding company and sixteen banks which had not established financial holding company. The data is collected form 2006 to 2009. Therefore, the study attempts to use Structure-Conduct-Performance theory to explain the bank of Financial Holding Company and Non-Financial Holding Company its market structure, behavior and performance. Moreover, we try to find out the three dimension are related. The major findings of this study are as follows:1. The variable of bank’s Structure including market share and asset share will positively influence the variable of bank’s Conduct.2. The variable of bank’s Conduct influence the variable of bank’s Performance.3. The variable of bank’s Structure will positively influence the variable of bank’s Conduct, and will further influence bank’s Performance.4. To discuss the bank of Financial Holding Company which path effect is better than Non-Financial Holding Company.The main conclusion is as following.1. By the building of financial holding bank, banks could improve their market rate and capital size. This can improve behavior of bank operation and operational efficient. So, building financial holding banks is benefit to commercial banks.’2. Commercial banks could improve their operational behavior and increase competition by building financial holding company.