| Summary: | 碩士 === 義守大學 === 管理學院碩士班 === 97 === During recent years, making an effort to better the Corporate Governance used to maximize equity and further create the business value has been one of the targets the national enterprises and government has aimed at. To assist with enterprises and institutions to satisfy the requirements of corporate governance, Securities and Futures Commission announced that the companies applying for listing must have the independent directors and supervisors on its board of directors including more than two independent directors and more than one supervisor. Notwithstanding the fact that an issuing company applying for the listing of its stock meets other listing criteria, the Corporation would disagree to its listing if the issuing company doesn’t have the independent directors and supervisors. Since 2007, all the listed companies have been forced to meet this article and Grandfathering rules have not been applied.
This research’s goals at discussing the interrelation between the independent directors mechanism and the corporate financial performance. The study period is from 2002 to 2007. There are 645 samples analysed with regression model in the research and Taiwan listed companies are the main subjects.
From the empirical results, it shows that especially in the electronics industry, the higher the shareholding proportion of directors and the reward of directors and supervisors are, as well as the higher the ratio of the seats of independent directors is, the more effective the financial performance shows. Further, in the electronics industry with the mechanism of the independent directors and supervisors, the shareholding proportion of directors and the reward of directors and supervisors are positively related to financial performance. However, the study doesn’t show the significant relationship between the mechanism of the independent directors and supervisors and the financial performance.
The empirical results of this study show that we can enhance the financial performance by the establishment of an independent board mechanism and we can have a positive impact on business results by the impartial independence and professional knowledge of independent directors and supervisors. Finally, this study has aggregated a number of recommendations for enterprises, government agencies, follow-up researchers as a reference.
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