An Empirical Study of Agency Problem, Corporate Governance and Corporate Performance of a Business Group

• Main Authors: Yi-Jing Kuo, 郭怡璟
• Other Authors: Hui-Fun Yu
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/85318899684865411703

碩士 === 清雲科技大學 === 國際企業管理研究所 === 100 === This study aims to establish a credit risk models for a conglomerate by identifying some important variables that may have influenced a business group’s performance during the period from 2000 to 2010.The primary objective of this credit risk model is to provide a framework that could serve as an early warning system regarding a business group’s potential financial risks.To reduce the credit risk of a business group ,empirical results of this study show that if ownership is combined with management,the business group should examine and reduce operating costs and relevant expenses as soon as possible to raise profitability, and it should control debt-to-equity ratio and cash flow adequacy ratio. If,however,there is separation of ownership from management, the business group should control debt-to-equity ratio so as to raise cash flow adequacy ratio, cash flow ratio and the EPS. A business group operated with professional management should institute independent directors and supervisors as soon as possible, and refrain from replacing CPAs,in order to improve corporate governance and enhance corporate performance. Therefore, the major findings of this research are: a business group that puts emphasis on corporate governance would reduce the incidence of credit risk.