Corporate Governance and Operating Efficiency

• Main Authors: Wan-Chih Liao, 廖婉芝
• Other Authors: Chao-Shi Wang
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/tsz349

碩士 === 國立臺中科技大學 === 企業管理系碩士班 === 106 === The 1997 Asian financial crisis and the 2008 global financial crisis drew much attention to corporate governance, which has since evolved into a prominent subject area. This study investigates the correlation between corporate governance and operational efficiency by drawing samples from listed companies in Taiwan. A total of 4099 observation values between 2012 and 2016 are analyzed for this purpose. This study first uses data envelopment analysis to measure the operational efficiency of a company. Four corporate governance indexes are then examined—namely CEO duality, size of board of directors, managerial ownership, and blockholder ownership—to determine whether these variables meet the preset standards, according to which scores are given in order to calculate a corporate governance score. The obtained corporate governance scores are then incorporated into a regression model for empirical analysis. The results indicate that the corporate governance indicators are significantly and positively correlated with operational efficiency; that is, sound corporate governance measures can enhance operational efficiency. Because of differences in financial statements between the financial industry and other industries, this study also conducts a separate analysis excluding samples from the financial industry. The results of this separate analysis also indicate a significant correlation between corporate governance and operational efficiency, supporting the overall findings.