Impacts of Independent Directors on Business Performances of Taiwan Stock Exchange Listed Companies based on Resource Dependence Theory.

• Main Authors: Chen, Tsai-wei, 陳采葳
• Other Authors: 謝錦堂
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/38924161738802429419

碩士 === 國立臺北大學 === 企業管理學系 === 101 === This research aims to explore and analyze the impact of independent directors’ external links on the business performances of Taiwan Stock Exchange listed companies. According to the theory of resource dependency, the board of directors acts as important link between corporation and the external environment. Such link has the function of providing necessary information, obtaining critical resources, and strengthening social legitimacy of the company, which in turn helps companies meet target and improve performance. The result of the study shows that it is not uncommon for independent directors to take several positionssimultaneously, also most of the independent directors have accounting specialty background. Comparing to the total number of specialties independent directors have, the total number of positions independent directors hold both inside and outside the company has more significant impact on business performances. Based on the above two variables, the impact on the electronic industry is more significant than the non-electronic industry. Also, by reviewing the specialties of the independent directors, we can see that accounting has more significant impact on business performances than other specialties especially in the electronics industry. In general,total number of positions has more significant impact on business performances than total number of specialties. However, within the electronics industry, total number of specialties, especially accounting, actually has more significant impact on business performances than total number of positions. Hence we suggest that listed electronics companies should pay special attention to the specialty background of independent directors. This result corresponds to theRegulations of Independent Directors and Compliance Matters for Public Companies which stated “Public companies established under the act are required to create an audit committee that has at least one independent director with accounting or financial expertise.” It is recommended the application be expanded since the research shows definite positive result of such regulation.