IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Financial Integration and Economies of Scope: A Cross-Industry Analysis of Bancassurance in Taiwan

Listed author(s):
  • Lih Ru Chen
  • Jin Lung Peng
  • Jennifer L. Wang
Registered author(s):

    Using unique bancassurance data from Taiwan, we examine whether banks improve their scope economies by engaging in bancassurance activities. We adopt an econometric approach to identify the relation between economies of scope and bancassurance. The empirical results show that higher involvement in bancassurance helps banks improve their cost scope economies but may also lead to revenue scope diseconomies. However, the overall results indicate that banks in Taiwan realized greater gains from cost scope economies than losses from revenue scope diseconomies by engaging in bancassurancc activities. In particular, banks with higher levels of bancassurance premium income and subsidiaries of financial holding companies are more likely to realize cost scope economies. On the other hand, banks with more correspondent insurers, larger numbers of branches, greater numbers of customers, a more intensive product focus, and a higher proportion of invested assets are more likely to realize revenue scope economies.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by Western Risk and Insurance Association in its journal Journal of Insurance Issues.

    Volume (Year): 31 (2008)
    Issue (Month): 2 ()
    Pages: 120-151

    in new window

    Handle: RePEc:wri:journl:v:31:y:2008:i:2:p:120-151
    Contact details of provider:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:wri:journl:v:31:y:2008:i:2:p:120-151. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (James Barrese)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.