| Summary: | 碩士 === 國立彰化師範大學 === 會計學系 === 104 === Many enterprise frauds were happened in the United States and Taiwan in recent years. And such companies not only manipulated earnings but embellished the financial statements, resulting in the interest’s damage of investors such as the significant losses. That attracts the concern of government regulators and investors and led them to increasingly emphasize on corporate governance and the protection of investors’ rights. Besides, the board of directors is the core of corporate governance and plays an important role in monitoring management. As the result, this study analyzes the association between characteristics of the board and investment decision of institutional investors.
This research chooses the listed companies which contain 3337 observations from 2010 to 2014 and uses fixed effect model to examine the association between the characteristics of the board and the institutional ownership. Our empirical results show that, directors’ and officers’ liability insurance is significantly negative with institutional ownership. Second, the president also served as general manager, the proportion of independent directors, directors with financial or accounting background, ownership by board members and board size are negatively related to the institutional ownership, as predicted. Third, we find that agency problems will weaken the relationship among characteristics of the board and the institutional ownership. Finally, after we consider each year, electronic industry and exclude the unreasonable samples of institutional ownership, the results remain the same.
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