The Effects of CEO and Board-of-Directors Characteristics on Firm Performance：Moderating Roles of Environmental Munificence and Industry Competitive Intensity

• Main Authors: Chung-Hsien Chen, 陳忠憲
• Other Authors: Chen Ying-Feng
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/vu585k

碩士 === 樹德科技大學 === 金融與風險管理系碩士班 === 102 === Research on the effects of CEO and board-of-directors (BOD) characteristics on firm performance have been inconclusive. The reasons may be due to the fact that previous research tends to use accounting-based financial indicators, such as return on assets (ROA) or return on equity (ROE), while ignores firm market performance such as earnings per share (EPS) and price earnings ratio (P/E ratio). Moreover, the contextual effects of industry characteristics on the relatrionships between CEO and BOD characteristics and firm performance have been largely ignored. As a result, this study applies the agency theory to explore the effects of CEO characteristics, including education level and experience, and BOD characteristics, including CEO duality, the proportion of outside directors, and shareholding ratio of major shareholders, on both a firm’s accounting and market performance, including EPS, P/E ratio, ROA, and ROE. The moderating roles of environmental munificence and industry competitive intensity are explored as well. Empirical findings based on a sample collected from companies listed in Taiwan stock markets with the survey and secondary approach show that proportion of outside directors in a BOD exerts the most explanatory power on firm performance. External environmental factors also produce moderating effects. By so doing, the study offers significant insights to the corporate governance literature and business practices.