Financial Early-Warning Models on Cross-Holding Groups-Compared Management and Ownership are the Same Person?

• Main Authors: Yi-Hua Chiu, 邱怡華
• Other Authors: Hui-Fun Yu
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/64257566971196385702

碩士 === 中國文化大學 === 國際企業管理學系 === 100 === This paper primarily used statistical methods to establish logistic Financial Early-Warning models in groups companies, discussed the agency problem on whether management and ownership belong to the same person. That made it be possible to predict in advance the probability of groups companies experiencing financial risk. In the empirical analysis, K-S test, M-U test and logistic risk models were established, and to determine variables that can significantly affect corporate performance. Finding, In the case where management and ownership are combined, there had no agency problems and increased the degrees of predictive accuracy, empirical results suggested that the key performance indicators are the solvency and the governance, it had also been found that increasing times interest earned, and establishment of independent directors and supervisors that reducing minimize risk of the company. It had also been found that reducing operating cost, operating expenses and interest expenses can enhance the times interest earned and corporate performance. Therefore, this paper may be useful for researchers and practitioners who are focusing on reducing interest expenses, adjust financing decision and establishment of independent directors and supervisors, can enhance corporate governance power and corporate performance implementation.