The Effect of Ownership Structure, Board Composition on Firm Value-Evidences from TAIEX-listed Companies

• Main Authors: Yuan-Ting Chao, 趙苑婷
• Other Authors: Jian-Fa Li
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/86607650113035205413

碩士 === 朝陽科技大學 === 財務金融系碩士班 === 99 === This study investigated the impact of the ownership structure, board composition on the value of firms through using the panel data multiple regression analysis. Empirically the results show that as for the ownership structure, both the ratio of managers holding and institutional investors holding are significantly and positively related to firms’ value. The reason is why as the ratio of managers’ increases, the interests of managers and shareholders are in line to enhance the corporate value. On the other hand, the impact of the ratio of major shareholders on firm value is negative, because when the major shareholder being also the role of the supervisor, he would fail to properly perform their oversight functions to lead to a decrease in firms’ value. As for board composition, the board size is negatively related to firms’ value, because when the board number is excessive, it would disperse and randomize the board discussion. Therefore it would reduce the benefits. The chairman of the board part-time general manager is a negative correlation to firm’s value; the problem of dual identity and independence exists as the chairman of the board serves as a general manager. The positive impact of the ratio of outside directors on firms’ value prevails since an increase in seats outside directors to the board in a decision-making could be more suggestive and improve corporate value.