| Summary: | 碩士 === 銘傳大學 === 金融研究所 === 89 === Financial or operational crisis caused by insider scandals of many stock-listed firms in Taiwan has received a considerable amount of attention in recent years. The different structures of the board established for solving agency problem originally will lead to different corporate policies and performances. However, to the best of our knowledge, no study concerning the relationship among board structure, financial policy and firm performance together exists.
Using data from stock-listed firms in Taiwan during the period 1991-2000, the study will build a structural model with three equations, and apply three-stage least squares(3SLS) to the model. In the three equations, we estimate all the equations in the model simultaneously, taking due account of all restrictions on such equations by the omission of some variables. The main conclusions are the followings.
1.As for the impact of the characteristics of the board on the firm performance, among those characteristics, only the director of the institution shows a negative relationship with the firm performance. Other factors all show a positive relationship with the firm performance.
2.As for the impact of the characteristics of the board on the financial policy, among those characteristics, the inside director has a negative relationship with financial decision, the concurrent of the president and the CEO has a negative relationship with investment decision. Other variables all show a positive relationship with financial policy.
3.Among the characteristics of the board, the inside director, the outside director, and the director of the institution are more influential on the firm performance. On the other hand, the degree of concentration of the shares of the board is more influential on the investment and financial decision.
4.Half year after the board taking office, its influence on firm performance and financial policy becomes evident.
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