Liu, C.. W. V., Yang, K.. T. R., and Chen, C.. P. V. 1991. The Competitive Behavior in Taiwan's Underwriting Industry. NTU Management Review, 2 (1): 165-191
Victor W. C. Liu, Institute of Business Management, National Sun Yat-Sen University
River T. K. Yang, Department of Business Administration, National Chengchi University; Investment Banking Group, China Development Corp.
Vincent P. C. Chen, Institute of Business Management, National Sun Yat-Sen University
Abstract
The aim of this study is to explore the competition situation in Taiwan's underwriting industry from 1988 to 1989. The paper is divided into two major parts: one is to identify the factors of the firms' competitive edge, and the strategic groups formed. The other part is to test two hypotheses about the relationship between underwriter and issuing company, which includes (1) H1: Different power contingencies resulted in underwriters' different influence behaviors. (2) H2: Different power contingencies resulted in underwriters' different performance. We found there were two strategic groups in underwriting industry, namely "Tradition/Relation Group" and "Entry/Expertise Group". Different power contingencies resulted in partial differences of underwriters' influence behaviors. However, different power contingencies would not result in any differences of underwriters' performance.
Keywords
Underwriting Strategic group Power Influence behavior Performance