| dc.description.abstract | Using data from life insurance and non-life insurance industry over 2007-2010, and securities industry over 2005-2010 period in Taiwan, this study examines capital adequacy ratio, corporate governance and operational performance of insurance industry and securities industry with different ownership structure, and the difference of these between the three industries before and after financial tsunami. The data is from the database of Taiwan Economic Journal Co. Ltd. We apply t test, ANOVA and nonparametric test to do empirical analysis, and the results are as follows:
1.The directors’ and supervisors’ shareholdings in life insurance, non-life insurance and securities industries are concentrated. Compared with the traditional industries, the equity pledge ratio of directors and supervisors in these three industries are stable (12.6% to 14.5%).
2.On the average, the operating profit of non-life insurance industry is positive before and after financial tsunami, which shows that though the non-life insurance industry will be affected by the recession of macro economy, the main factors that have an impact on the profit are catastrophe claims and improper reinsurance.
3.The operating expense ratio of securities industry is greater than the life insurance and non-life insurance industries, and the lowest one is in the life insurance industry, which conforms to their business characteristic. The cost of capital for the securities industry is the least, and the main cost is managerial and marketing expense, while the main costs for the insurance industry are insurance indemnity and policy reserves.
4.The operating profit margin, earnings per share, return on assets, and return on equity in life insurance industry are significant lower than the other two industries and the average of them are negative, which shows that the life insurance industry is affected by the financial tsunami the most.
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