The Relationship between Independent Directors System and Firm Value

• Main Authors: Yu-Hui Hsu, 徐玉惠
• Other Authors: Hui-Min Chung
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/48051620216435738473

碩士 === 國立交通大學 === 管理學院碩士在職專班財務金融組 === 97 === It is generally recognized that one of the main reasons for Asian financial crisis is poor government system. In the aftermath of the crisis, responding to the demand from the International Monetary Fund (IMF), the Korean government instituted a serious of corporate form measures, requiring at least 25% of the board to be ouside directors for listed firms. In emerging marker, South Korea, empirical results indicate that outside directors do have significant and positive effect on firm performance. This contrast with the results from US firms that shows no relation between outside directors and firm reformance. A company•s board of directors is one of the core of corporate government. Under the coporate government, this study aims to examine the relation between board independent and firm value in Twiwan, and to look into whether family、foreign institutional investors and bank ownership among many listed companies in Taiwan would influence such relationship so as to understand wherther the board independence plays a role in firm value. Five primary empirical results are as follows: Hypothesis1: The board independence has a positive relationship with firm value. Hypothesis2: In electronics industry companies, the board size has a positive relationship with firm value. However, in non-electronics industry companies, the board size has an insignificant relationship with firm value. Hypothesis3: In electronics industry companies, the family ownership has an insignificant relationship with firm value.However, in non-electronics industry companies, the family ownership has a positive relationship with firm value. Hypothesis4: Firm value has increase with with the proportion held by foreign institutional investors. Hypothesis5: Firm value has no relationship with the proportion held by banks and financial institutions.