| Summary: | 碩士 === 國立中山大學 === 財務管理學系研究所 === 90 === On 18th Mar 2000, Mr. Chen, Shui-Bian in Democratic Progressive Party was elected to be the new president. Taiwan experienced the first powershift. However, many state-owned banks as well as some government-shared companies re-structured their board of directors continually. In the view of politics, the powershift will be normal in Taiwan in the future. So we try to survey the the effects of powershift towards re-elections of boards and firm performance of state-owned enterprises.
We discover that the major reason why government wants to intervene the operations of companies is policy. If this kind of industry is regulated or monopolistic, the government will has stronger motives to intervene its operation. On the other hand, after being intervened by the government, the cumulative abnormal return declined significantly from the event day to thirty days later. Besides, the firm performance didn’t improve significantly through the view of TobinQ, EPS and Market return. So we can say that this time of powershift didn’t improve the poor condition of corporate and firm performance significantly. So Taiwan corporate governance should abandon the relationship-based economic model and stride to the talent-based model.
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