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ABSTRACT After the implementation of the financial holding laws and interest rate liberalization by the government, the financial industry, which was originally stable in the country, has undergone tremendous changes in its operations. Banks, insurance and securities companies have established financial holding companies. The rise of the Internet, the advent of the low interest rate era, makes the interest rate of the market transparent, and the various financial control companies compete for each other's price cuts, which in turn affects the company's stock return rate. This study mainly discusses whether the changes in the weighted stock index return rate and interest rate will affect the stock holdings of financial holding companies. This research is aimed at the stock returns of 15 financial holding companies listed in the domestic market and the upper cabinet. The research period is from January 1, 2014 to December 31,2018. The empirical results found that: First, the stock price remuneration will be affected by the weighted stock price index reward, and the sensitivity is positive and significant. Second, the financial holding company's stock price remuneration is different for long-term and short-term interest rate sensitivity. Among them, five short-term interest rates are significant, and the long-term interest rate has only one national ticket financial holding company is significant, indicating that short-term interest rate changes are against financial holdings. The company's stock price compensation has a greater impact. Third, public financial control has no significant impact in both long-term and short-term. Private financial control has a significant impact in the long-term and short-term, indicating that private financial control companies are more sensitive to long-term and short-term interest rates.
Keywords: Interest Rates, Financial Holding Companies, Rates of Return
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