An Empirical Study between Firm Risk and Firm Performance-Using Sample of Taiwan IT Industry

• Main Authors: Chung-Chi Chen, 陳尚琦
• Other Authors: Shin-Ping Lee
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/yejhrk

碩士 === 銘傳大學 === 會計學系碩士班 === 95 === The main purpose of this study is to examine the Inter relationships among corporate firm risk and firm performance, using a sample of Taiwan’s IT industry. The samples’ period is from Taiwan stock market between 1996 and 2005.The model was applied to investigate the effect of endogenous variables. Besides, The study find out the relationship between firm risk and firm performance, we also know some of corporate government’ characters effect firm risk and firm performance indeed. The empirical results are summarized as follows: 1. Board size, debt ratio, and the rate of shift auditor are negative related to firm performance. The relationship between board ownership and firm performance is in U-shaped. Institutional ownership and the rate of increasing assets have significantly positive relationship with firm performance. 2. The study provided evidences for board ownership, institutional ownership, and block holder equity ownership which have negative relationship with firm risk. But debt ratio, firm size, R&D .expenditure, related party transaction, and the rate of shift auditor is significant positive effect firm risk. 3. Firm performance can positive effect firm risk, but the firm risk is not significantly related to firm performance. The empirical result of this study shows that the better performance of the firm, which will lead to suffer more of the firm risk. In the study, we also get evidences to prove some corporate government mechanism could influence firm performance or firm risk. Such as stock structure, financial characters, the possibility of firm growth, and board’s organization.