Exploring the Impact of Recruiting "Celebrities" as Independent Directors on Firm Value for the Firms Listed in TWSE

• Main Authors: Ting-Hsun Ho, 何定勳
• Other Authors: Yen-Sen Ni
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/7kgybf

碩士 === 淡江大學 === 管理科學學系企業經營碩士在職專班 === 103 === According to the revision of Securities Exchange Act in 2006, the firms should recruit independent directors on the board of directors for the firms listed Taiwan Stock Exchange. Owing to independent directors unnecessary to hold shares outstanding, many firms seem inclined to recruit "celebrities" as independent directors to meet the Act. This study explores whether the firms recruiting celebrities as independent directors would enhance firms value. Furthermore, we classify these celebrities into three groups including outgoing administrative officers, outgoing representatives, and outgoing executives of state-owned enterprises. The results shows that recruiting these celebrities might not enhance firm value except the firms recruit outgoing executives of state-owned enterprises as independent directors, even though we argue that these "celebrities" might have the professional background, social networks, and industry and other practical experience.