Competition, Contestability and Market Structure for Securities Firms in Taiwan

Asian Economic and Financial Review

Chang-Sheng Liao^1¹ 

[1] College of Management, Samming University, Fujian, China, Department of Finance and Cooperative Management, National Taipei University, Taiwan, Republic of China^1

关键词: Securities firms;    Market structure;    Contestability;    X-Efficiency;    Structure-conduct-performance Hypothesis;    Efficient structure hypothesis.;   

DOI  :  10.18488/journal.aefr.2018.84.499.514

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

The purpose of this study is to investigate securities firms? market structure and contestability in Taiwan over the period from 1998 to 2006. This is the first study to integrate structural and non-structural approaches to the evaluation of competitive conditions in securities firms. The findings of this study have managerial implications, as the results show that market share is positively related to profitability but negatively related to efficiency, implying that the pursuit of market share may not be an appropriate strategy for securities firms. Empirical results show that securities firms are not in perfect competition and that the market is instead characterised by monopolist competition. The results regarding changes in the degree of competition show that securities firms? competitive condition is not improving. The government is to advance a serial of financial reform policies, but they do not affect securities firms, so the market remains a monopolist competitive environment with a lower level of contestability.

【 授权许可】

CC BY