The Impacts of Directorate's Remuneration on Corporate Performance in Taiwan

• Main Authors: Chen, Jia-Huei, 陳佳惠
• Other Authors: Lin, Feng-Li
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/958yun

碩士 === 朝陽科技大學 === 會計系 === 105 === The relation between corporate performance and corporate governance has been discussed for a long time. Many people believe that good corporate governance cloud improve the corporation performance. Good corporate governance provides the better information quality for investors and creditors. In Taiwan, in the view of corporate governance, the management who has the operation right may also be a shareholder, and the shareholders in the corporation will elect the directors and supervisors by convening the meeting. Therefore, directors should supervise the management to ensure the equity of the stakeholder. The samples in this study selected form the listed companies in Taiwan during 2006 to 2015. In addition, we divided directorate’s remuneration into the directorate’s all remuneration and the directorate’s remuneration only includes surplus, and using ROA, ROE, Tobins’Q to be proxy variables of corporate performance. This study aims to examine the relation between the directorate’s remuneration and corporate performance. The results indicate that (1)The directorate’s all remuneration is significant positive correlation on corporate performance. (2)The directorate’s remuneration only includes surplus is significant positive correlation on corporate performance. The institution of directorate’s remuneration is purpose to appreciate directors and supervisors for their contribution, and to be as a system which inspires directors and supervisors to seek profit maximization for their corporation. The study indicates that increases of the directorate's remuneration proxy variable, the corporate performance will be better. Therefore, the good incentive system is contributive for corporations’ development. Eventually, the study also gives some advice on future research direction as a reference for corporate governance and academic research.