Peer Effects in Corporate Governance

• Main Authors: YANG, TI-AN, 楊堤安
• Other Authors: WANG, CHU-SAN
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/56aues

碩士 === 國立臺北大學 === 企業管理學系 === 105 === The effect on capital structure, investment decision-making and dividend policy from other firms in the same industry has been well addressed in the literature. The imitative effects among peer firms have been confirmed. Although the related studies have found the existence of peer effects in financial decision, there's currently no study examining whether peer effects also exist in corporate governance decisions. Therefore, the main purpose of the study is to explore the possible peer effect of corporate governance among Taiwan's listed companies. This paper follows Gompers, Ishii & Metrick(2003) to construct a comprehensive corporate governance index for Taiwanese firms, and then examine the relevance between the average corporate governance quality of peer firms and corporate governance quality of individual firms. The empirical results show that corporate governance decisions are affected by the concurrent corporate governance decisions of other companies in the same industry, which proves that the peer effect does exist. Furthermore, it's found that the peer effects in corporate governance have a positive or negative impacts on individual firms, depends on the peer firms’ corporate governance is relatively good or bad in the overall market. It again confirms that the phenomenon of imitative behaviors among firms.