| Summary: | 碩士 === 東吳大學 === 經濟學系 === 98 === Abstract
The corporate governance is a mechanism to protect the interests of corporate capital providers and all related stakeholders through the development of a set of managerial standards for companies. Inappropriate corporate governance mechanisms have been argued as one of the causes of recent financial crisis. Especially, top managers in bank industries have incentive for self-interest intentionally to result in other stakeholders' interest expropriation. Therefore, the corporate governance becomes more important for the bank industry to prevent the wealth expropriation and regulators also expect to build a well-supervised financial market more relying on better corporate governance mechanisms.
Our empirical results show that corporate governance factors have significant effects on the cost efficiency of China and Taiwan banks but the direction of effects differs in three aspects:
(1) board governance and monitoring: there is a significantly positive influence of factors of board governance and monitoring on Taiwan banks' cost efficiency, which means the better board governance and monitoring the more cost efficiency of Taiwan banks; however, there is no significant effect of board governance and monitoring on cost efficiency in China banks, perhaps because of incomplete internal control and audit systems and independent directors selection;
(2) ownership structure: there is a significantly positive influence of factors of ownership structure on the cost efficiency for both China and Taiwan banks, which means the stronger ownership structure the more cost efficiency for both China and Taiwan banks;
(3) independent supervisory: there is a significantly positive influence of independent supervisors in supervisory board on Taiwan banks' cost efficiency, which means the more independent supervisors in supervisory board the more cost efficiency for Taiwan banks; however, there is a negative influence of independent supervisors in supervisory board on China banks' cost efficiency.
We also find that the average TGR (technology gap ratios) and CE* (Common Efficiency) of Taiwan banks dominate those of China banks but the differences are shortening in recent two years (2007-2008).
Key word：Efficiency, Bank, corporate governance, Meta-Frontier Model, Frontier Model
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