CEO Power, Corporate Governance and Credit Risk Models：Evidence on Cross-Holding Groups

• Main Authors: Mei-Lan Tseng, 曾美蘭
• Other Authors: Hui-Fun Yu
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/25073360054124795774

碩士 === 清雲科技大學 === 國際企業管理研究所 === 101 === In this study, the survey sample consisted of Group 53 and Non-Group 43 from the Credit Risk companies in 2000-2011. Using statistical methods to construct Group professional credit risk models, considering the agency problems generated by the management and ownership operated separately, to find the CEO Power of Chief Executive Officer, CEO significantly affect the variables of company''s performance. Expectations of investors, financial institutions and stakeholders to predict the probability of financial risks may occur, reducing the possibility of financial risk loss, thus increasing corporate value. For empirical analysis, K-S test, M-U test and Logistic credit risk models were established.The empirical results suggest that, when the management and ownership separated, the CEO power for Group would influence the corporate performance on financial structure, solvency, management ability, profitability, cash flow and the indicators of corporate governance; as soon as possible to improve the ratio of interest coverage and cash flow adequacy can enhance debt service and management capacity, reduce the possibility of financial risk; reduce the rates of interest expense and improve the ratio of cash flow to face the problem of the funding gap in the short term; The Professional managers (CEO) avoid the replacement of the accountant and set up the directors and supervisors independently, enhancing the ability of corporate governance, improving corporate performance. The main impact on the performance of non-group companies are financial structure, solvency, management ability, profitability and the indicators of cash flow. The Non-Group companies adjust the policy of dividend, reducing the ratio of cash reinvestment, earnings per share (EPS), the ratio of internal reserves, reducing the occurrence probability of credit risk; increasing inventory turnover, fixed asset turnover, operating profit margin and the ratio of cash flow adequacy can enhance the company''s profitability. Therefore, the empirical value and managerial implications of this study, the CEO Power of Group''s companies avoids the replacement of the accountant and sets up the directors and supervisors independently can improve corporate governance, and reduce the possibility of credit risk.