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.

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 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.

Resurgence, Part II

2020 ◽  
pp. 170-195
Author(s):  
Arthur E. Wilmarth Jr.
Keyword(s):  
Federal Government ◽  
Insurance Companies ◽  
Over The Counter ◽  
Holding Companies ◽  
Financial Conglomerates ◽  
Shadow Banks ◽  
Holding Company ◽  
Financial Holding ◽  
Financial Holding Companies ◽  
First Time

Large banks and their political allies waged a twenty-year campaign to secure legislation that would remove the structural buffers established by the Glass-Steagall and Bank Holding Company Acts. That campaign triumphed in 1999, when Congress passed the Gramm-Leach-Bliley Act (GLBA). GLBA authorized the creation of financial holding companies that owned banks, securities firms, and insurance companies. In 2000, Congress passed the Commodity Futures Modernization Act (CFMA), which exempted over-the-counter derivatives from substantive regulation by the federal government or the states. GLBA and CFMA enabled large U.S. banks to become universal banks for the first time since the 1930s. Large U.S. securities firms responded by becoming shadow banks (and de facto universal banks) through their issuance of deposit substitutes (shadow deposits). Similar patterns of deregulation encouraged the growth of large universal banks in the U.K. and Europe. A group of seventeen U.S., U.K., and European financial conglomerates dominated global financial markets by 2000.

scholarly journals A New Grey Approach for Using SWARA and PIPRECIA Methods in a Group Decision-Making Environment

Mathematics ◽  
2021 ◽  
Vol 9 (13) ◽  
pp. 1554
Author(s):  
Dragiša Stanujkić ◽  
Darjan Karabašević ◽  
Gabrijela Popović ◽  
Predrag S. Stanimirović ◽  
Muzafer Saračević ◽  
...  
Keyword(s):  
Decision Making ◽  
Group Decision Making ◽  
Group Decision ◽  
Multiple Criteria Decision Making ◽  
Grey System Theory ◽  
Multiple Criteria ◽  
Decision Making Process ◽  
Grey System ◽  
Criteria Weights

The environment in which the decision-making process takes place is often characterized by uncertainty and vagueness and, because of that, sometimes it is very hard to express the criteria weights with crisp numbers. Therefore, the application of the Grey System Theory, i.e., grey numbers, in this case, is very convenient when it comes to determination of the criteria weights with partially known information. Besides, the criteria weights have a significant role in the multiple criteria decision-making process. Many ordinary multiple criteria decision-making methods are adapted for using grey numbers, and this is the case in this article as well. A new grey extension of the certain multiple criteria decision-making methods for the determination of the criteria weights is proposed. Therefore, the article aims to propose a new extension of the Step-wise Weight Assessment Ratio Analysis (SWARA) and PIvot Pairwise Relative Criteria Importance Assessment (PIPRECIA) methods adapted for group decision-making. In the proposed approach, attitudes of decision-makers are transformed into grey group attitudes, which allows taking advantage of the benefit that grey numbers provide over crisp numbers. The main advantage of the proposed approach in relation to the use of crisp numbers is the ability to conduct different analyses, i.e., considering different scenarios, such as pessimistic, optimistic, and so on. By varying the value of the whitening coefficient, different weights of the criteria can be obtained, and it should be emphasized that this approach gives the same weights as in the case of crisp numbers when the whitening coefficient has a value of 0.5. In addition, in this approach, the grey number was formed based on the median value of collected responses because it better maintains the deviation from the normal distribution of the collected responses. The application of the proposed approach was considered through two numerical illustrations, based on which appropriate conclusions were drawn.

Sign in / Sign up

Export Citation Format

Share Document