Corporate Governance Structure and Employment Adjustment

• Main Authors: Wei-ting Chiu, 邱薇庭
• Other Authors: Ming-yuan Chen
• Format: Others
• Language: en_US
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/hd2vd2

碩士 === 國立中央大學 === 人力資源管理研究所 === 102 === The financial tsunami in 2008 caused a great impact to the world. Many countries got affected by this financial crisis. Under this inevitable trend, Taiwan was no exception. The impact of this tsunami and also tight finances brought all of the enterprises to think about how to reduce their cost in order to get through this crisis. Layoff is usually the most common approach undergone by them. However, while most of the companies took the approach of layoffs to reduce costs, there were still some benchmark companies did not take the downsizing plan to face the economic downturn. People who are responsible for doing these reshuffling decisions are usually the senior board members in the company. So the purpose of this study is to investigate whether the corporate governance structure will affect the company's employment adjustment speed and also try to understand whether the different structure of the board of directors lead to different layoff decisions during the period of loss. In our research, we examined 523 firms which can be separated into electronic industries and non electronic industries in Taiwan. We have 248 firms in electronic industries and 275 non electronic industries. The board structure will also be divided into four parts, which are board composition, CEO duality, ultimate ownership and ownership structure. A major finding is that most of the corporate governance structure variables have impact to the adjustment speed. The moderator of firm deficits also has effect among corporate governance structure and the employment adjustment speed. Besides, when the firm in deficits the employment adjustment speed will be faster.