An Analysis of Working Capital Management and Corporate Governance-Taiwan Listed Companies

• Main Authors: Wei Chen, 陳瑋
• Other Authors: Chang-Sung Yu
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/54845p

碩士 === 國立臺灣大學 === 商學研究所 === 105 === This paper aims to discuss the relationships between working capital management and corporate control type and corporate governance for Taiwan listed companies. The results are proven through the hypothesis based on previous researches, empirical studies and editor’ assumptions. This paper uses Taiwan’s listed company data in 2014 and apply multiple regression method to get the results. The results show that the companies which have pyramid ownership structure have less working capital than the ones without. A negative relationship is found. The companies which have pyramid ownership structure may mitigate its own working capital by appropriate its subsidiaries’ resources. Second, the boards whose members have a higher percentage of doctor degree have less working capital. A negative relationship is found. This means that the boards with more doctors have more ability to improve its working capital management. Last, the companies owned by government have less working capital which confirms a negative relationship. As for cash conversion cycle, there are no statistically significant corporate governance variables found. This paper also analyzes different aspects of working capital management of three industries in ICT industry: Personal computer and cell phone OEM, wafer foundry, and telecommunication. The results show that OEM and wafer foundry require more working capital than telecommunication which is due to the difference between manufacture and service industry. Wafer foundry have longest cash conversion cycle among the three and bigger inner industry variance. The relationship between cash conversion cycle and profitability is not always negative but each industry has its own suitable level. As for board characteristics, these three industries have more directors with master and doctor degree compared to the average industry level. However, they tend to have less directors with finance and accounting background.