Abstract
Economies of scale and economies of scope are two big business advantages for financial holding companies. This paper is based on the operating data of 8 domestic financial holding companies from the years 2007-2012. Analyzing the effect economies of scale have on the returns and costs of financial holding companies, and analyzing the effect of economies of scope in terms of fixed effect and random effect. Research shows that both economies of scale and economies of scope exist within domestic holding companies; the effect of economies of scale is much more profound in moderate-sized financial holding companies; whereas in large financial holding companies the effect of economies of scope is comparatively weaker. Thus, this paper believes that the government should actively promote the development of financial holding companies, and that financial holding companies should maintain appropriate scale management.
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Zeng, L. (2015). Economies of Scale, Economies of Scope and Financial Holding Companies Appropriate/Moderate Scale Management. In: Bian, F., Xie, Y. (eds) Geo-Informatics in Resource Management and Sustainable Ecosystem. GRMSE 2014. Communications in Computer and Information Science, vol 482. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-45737-5_1
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DOI: https://doi.org/10.1007/978-3-662-45737-5_1
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