Study the Relationship between Corporate Governance and Firm Bankruptcy-A Case Rebar Groups

• Main Authors: LIANG, TSUI-MAN, 梁翠嫚
• Other Authors: 謝錦堂
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/98520089262971993422

碩士 === 國立臺北大學 === 企業管理學系 === 99 === What followed consequently after the bankruptcy of America’s Enron Corporation were the scandals of WorldCom Group, Xerox, and Merck enterprises, that had raised the worldwide attention, thus corporation management has become an important issue for the investors as well as a topic in academic discussion. However, the asset-stripping scandals still happened unexpectedly in many publicly traded corporations, such as companies which had existed at a quite early stage like Typhone Food Corporation, Donglong Hardware, Chinese Automobile as well as other newer companies like Pacific Electric Wire & Cable, Procomp, Infodisc Technology. At the end of 2006, the Rebar Group, whose asset was estimated to be 500 billion NT, suddenly announced bankruptcy and this had brought enormous impact over Taiwanese society. In a brief, the bankrupt companies that have suffered from financial crises often have fraudulent issues in the superstructure of their operators and managers, and the mechanism of corporation management is now considered crucial in the operational structure of a well-managed corporation as well as an ultimate resolution for the best benefits of the corporations and their shareholders. This essay will take the Rebar Group as an individual case of bankrupt company and TSMC as the case of the well-managed company, and it will also analyze the specific structural factors and makes comparisons between the boards of directors of these two companies to draft advices on how to build a well-structured company and these are also references for companies who aspire to construct an ideal managerial system. From the analysis and comparisons made over various specific structural factors of the boards of directors in companies like Rebar Group and TSMC, we discover that the problems in the structure of the board of directors have great deal to do with the corporation’s bankruptcy, and we could tell a company’s well-being by examining the traits of the structure within the board of directors. If the structure of the board of directors has been steadily built, the company would have established a great foundation for its managerial system and this well-constructed managerial system would help the company to evolve its status and also create the substantial value for the company.