scholarly journals Strengthen Financial Holding Companies’ Business Sustainability by Using a Hybrid Corporate Governance Evaluation Model

2019 ◽  
Vol 11 (3) ◽  
pp. 582 ◽  
Author(s):  
Jim-Yuh Huang ◽  
Kao-Yi Shen ◽  
Joseph C.P. Shieh ◽  
Gwo-Hshiung Tzeng
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Evaluation System ◽  
Academic Research ◽  
Multiple Criteria Decision Making ◽  
Fuzzy Evaluation ◽  
Holding Companies ◽  
Business Sustainability ◽  
Financial Holding ◽  
Financial Holding Companies

While the importance of corporate governance has been broadly acknowledged in global financial markets and academic research, how to devise a practical evaluation system is relatively unexplored. This paper attempts to refine the Corporate Governance Evaluation System (CGES), constructed by the Taiwan Stock Exchange (TWSE) since 2014. The current CGES has several debatable issues in its complicated design (e.g., it comprises over 80 indicators in different types). To resolve those issues, this study invited ten senior domain experts (including several CEOs of financial holding companies) to retrieve 13 essential criteria from the CGES in four dimensions. Additionally, this study integrates several multiple criteria decision-making (MCDM) methods (i.e., decision-making trial and evaluation laboratory (DEMATEL), modified VIKOR, DEMATEL-based analytical network process (DANP)) and the fuzzy evaluation technique to rank the exemplary companies. The final ranking is consistent with the one released from the CGES in 2017. This study conducted additional experiments to ensure the robustness of the findings. The newly devised model not only assists the ranking decisions but also supports a company in discussing the plausible action plans to strengthen corporate governance based on the analytics. These findings enrich the understanding of corporate governance and contribute to gaining business sustainability for financial holding companies.

scholarly journals Strengthen Financial Holding Companies’ Business Sustainability by Using a Hybrid Corporate Governance Evaluation Model

2018 ◽  
Author(s):  
Jim-Yuh Huang ◽  
Kao-Yi Shen ◽  
Joseph C.P. Shieh ◽  
Gwo-Hshiung Tzeng
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Evaluation System ◽  
Academic Research ◽  
Multiple Criteria Decision Making ◽  
Fuzzy Evaluation ◽  
Holding Companies ◽  
Business Sustainability ◽  
Financial Holding ◽  
Financial Holding Companies

While the importance of corporate governance has been broadly acknowledged in global financial markets and academic research, how to devise a practical evaluation system is relatively unexplored. This paper attempts to refine the Corporate Governance Evaluation System (CGES), constructed by the Taiwan Stock Exchange (TWSE) since 2014. The current CGES has several debatable issues in its complicated design (e.g., it comprises over 80 indicators in different types). To resolve those issues, this study invited ten senior domain experts (including several CEOs of financial holding companies) to retrieve 13 essential criteria from the CGES in four dimensions. And this study integrates several multiple criteria decision-making (MCDM) methods (i.e., Decision-making trial and evaluation laboratory (DEMATEL), modified VIKOR, DEMATEL-based analytical network process (DANP)) and the fuzzy evaluation technique to rank the exemplary companies. The obtained ranking is consistent with the one released from the CGES in 2017. This study conducted additional experiments to ensure the robustness of the findings. The newly devised model not only supports the ranking decisions but also provides a managerial guidance for companies to pursue systematic improvements. These findings enrich the understanding of corporate governance and contribute to gaining business sustainability for financial holding companies.

scholarly journals Business Sustainability Performance Evaluation for Taiwanese Banks—A Hybrid Multiple-Criteria Decision-Making Approach

2019 ◽  
Vol 11 (8) ◽  
pp. 2236 ◽  
Author(s):  
Arthur Jin Lin ◽  
Hai-Yen Chang
Keyword(s):  
Decision Making ◽  
Enterprise Resource Planning ◽  
Multiple Criteria Decision Making ◽  
Resource Planning ◽  
Multiple Criteria ◽  
Insurance Companies ◽  
Holding Companies ◽  
Business Sustainability ◽  
Financial Holding ◽  
Financial Holding Companies

The Taiwanese government has encouraged bank privatization and the establishment of financial holding companies to improve banking sustainability and consolidate banks, insurance companies, and securities firms. It is important for bank decision makers to set policies that lead to sustainable development. However, the literature remains unclear about the types of banks that achieve greater business sustainability. This paper aims to (1) identify the criteria that affect banks’ business sustainability and (2) determine the most sustainable types of banks. This study uses a hybrid multiple-criteria decision-making approach on eighteen financial criteria for twenty-five Taiwanese listed banks with data from 2012 to 2016. The results show that non-performing loan ratio is the most critical factor. In addition, financial holding companies outperformed non-financial holding companies. Financial holding companies with insurance companies as their largest subsidiaries performed best. Private banks exceeded state-owned banks in sustainability. The results lead to two implications. First, banks should value risk over profitability and diversify financial products. Second, the government should continue to privatize banks. These findings suggest that bank managers implement an enterprise resource planning (ERP) system with a master plan, framework, and guidelines to help them track bank performance indicators to ensure sustainability.

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