| Summary: | 碩士 === 國立中山大學 === 企業管理學系研究所 === 100 === Family-owned enterprise is a typical governance structure around the world. In addressing the governance issues in family business, the founding family usually utilizes the direct or indirect ownership structure and also the management design to mitigate the typical agency-principal problem among founding family and the professional managers in family businesses. However, scholars indicate that the majority shareholders, such as the founding family in a family business, will induce the principal-principal agency concern, and also have the possibility to exploit the minority shareholder’s interests in publicly traded family businesses. Thus, the corporate governance today will not only focus on mitigating the typical agency-principal problem, but also the principal-principal agency problem in family businesses. This study tries to examine the role of the internal audit’s independence in addressing the performance issues in publicly traded family businesses in Taiwan. From the agency theory viewpoint, this study try to utilize the questionnaires method to estimate the degree of the internal audit’s independence, and future examine its performance impact in family businesses in Taiwan.
This study suggests that the internal audit power, and the internal audit independent execution, can be two kinds of independence indexes in estimating the degree of internal audit’s independence. The results indicate that the internal audit’s independence will generate direct and moderated impact on publicly trade family business’s performance in Taiwan. Specifically, the more independent board of directors a family business has, the better performance that this focal firm behaves. Moreover, the internal audit’s independence will generate positively direct impact on firm performance in a family business. Additionally, the degree of internal audit’s independent execution will moderate the positive impact from independent board of directors and family leadership on firm performance in publicly trade family businesses in Taiwan. This study provides referable values in estimating the internal audit’s independence in publicly trade businesses. And it also provides theoretical and practical implications in addressing governance issues in family businesses in Asia.
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