A Study of the Firm Performance Effect between Board Composition and Ownership Structure

• Main Authors: Ya Fei Hsu, 許雅斐
• Other Authors: S. S. Wu
• Format: Others
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/22459544299728233009

碩士 === 長庚大學 === 企業管理研究所 === 96 === Corporate Governance has become one of the popular themes in finance studies these years. From the Asian Finance Crisis of 1997 to the United States Enron, World Com, and Merck scandal in 2001, and the Chung Shing Bank, Procomp Co.corrupt practices recently in Taiwan, Corporate Governance issues are discussed heavily. According to the literature review related to Corporate Governance theory, this study takes two facets for study：the board composition and ownership structure. Then we divide the facets into nine variables as the index of Corporate Governance, and taking a regression analysis between the total scores and the performance of company likes as：EPS、ROA and ROE . Our sample includes 14 financial holding companies in Taiwan from 2003 to 2007. The tentative conclusions are： 1. The ratio of the pledged shares held by the board and supervisors has a negative relationship with the firm’s operating performance. However, the ratio of the stock held by the largest shareholder has a positive relationship with EPS ; and the ratio of the stock held by the manager has no relationship with the firm’s operating performance. 2.The number of the board member has a positive relationship with the ROA、ROE and EPS; meanwhile , the ratio of the independent director and the independent supervisor both have a positive relationship with firm’s operating performance.