A Study of the Relationship between Board Structure and Financial Risk in Private Universities

• Main Authors: Yeh Ya Wen, 葉雅文
• Other Authors: Shu-Chen Kang
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/81865630951952565503

碩士 === 逢甲大學 === 會計學系 === 103 === The boards of directors of private colleges in Taiwan were selected as the research subjects. Using published financial documents from 2009 to 2011 the study investigated the relationship between the board structure and the financial risk of private schools using regression model analysis. Empirical evidence showed that that there is a positive correlation between financial risks and the compensation of directors and supervisors. This indicates that the amount of compensation that the directors and supervisors receive is related to the potential financial risk in terms of entrenchment. The results showed a negative correlation between financial risk and the size of the board which shows that a large board can better maintain its checks and balances and in turn lower the financial risks faced by the school. This study can be used as a reference for academic research government agencies and authorities to evaluate the financial risks faced by schools.