An Empirical Study of the Impact of CEO Characteristics and Corporate Governance on the Success of Private Replacement

• Main Authors: Liang Fu Hsiung, 梁富雄
• Other Authors: 黃劭彥
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/47879505254613406082

碩士 === 國立中正大學 === 會計與資訊科技研究所 === 101 === CEO is a keyman in the enterprise. His unique leadership qualities have a significant impact on corporation strategy. In addition to CEO’s personal characteristics, the better the corporate governance mechanism has been set up, the more efficient the responsibilities and rights could be allocated between stockholders and top management,especially for stakeholders’ interest. In the assessment of investment proposals, professional investors generally regard CEO’s personal characteristics and corporate governance mechanism as essential indexes for assessment. However, facing the unequal qualities of private replacements, how can the professional investors evaluate their investment value by way of examining CEO’s personal characteristics and corporate governance mechanism? In this study, we collect CEO characteristics and corporate governance mechanism data including tenure, education level, functional background, international experience, stock ownership, duality, the size of board, the ratio of board ownership, the ratio of boards’shares pledged, the ratio of large shareholder ownership and the ratio of independent director and supervisor compositions as independent variables, and also included company size, industry, year, private replacement use, the number of annual private replacement declaration, listed category, earnings per share, return on asset and liability ratio as control variables. The time period of 2003-2011 is selected, and 1,337 private replacement samples in listed companies in taiwan were chosen as objects of study. This study uses a logistic regression model to test the hypotheses. Finally we further divided into the two groups of the manufacturing and service sectors, and examined the defferences. The empirical results on the relationship between CEO characteristics and the success of private replacement in all samples indicate that duality and the ratio of boards’shares pledged have shown a significant negative correlation; CEO stock ownership and the ratio of board ownership has shown significant positive correlation. In the manufacturing sectors, only CEO stock ownership and the ratio of board ownership has shown significant positive correlation. In the service sectors, CEO tenure, the ratio of boards’shares pledged and the ratio of independent director and supervisor compositions have shown a significant negative correlation; CEO’s education level, stock ownership, the ratio of board ownership and the ratio of large shareholder ownership has shown significant positive correlation.