Independent Multiple Directorships' Impact on Corporate Performance and Risk

• Main Authors: YANG, CHIA-YUNG, 楊家源
• Other Authors: LEE, YUNG-CHUAN
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/rq499c

碩士 === 亞洲大學 === 經營管理學系 === 106 === A procedure is In recent years, corporate governance has gradually become a learning process. The Taiwanese government has started to establish and develop guidelines concerning corporate governance. One of the most important measures is to promote the independent director system in all aspects. However, as independent directors become more common, whether or not this affects supervisory function creates a two-sided debate. One is that part-time employment will lead to a reduction in the company's supervision time, making supervision less effective; the other concludes that more part-time employment represents the abundant resources of the independent director, providing resource assistance for the company's operations. This study uses the information of listed companies in the Taiwan Economic News (TEJ) database as the basis for full-text sample organization. Both financial data and non-financial data are measured using the annual data as variables. The sampling period of the data is from 2007 to 2016 for a total of ten years. The companies are then organized, removing the samples with different industrial characterization and incomplete data. Therefore, the final total of sample companies was 14,137. The performance of the company was measured by the Tobin’s Q ratio, return on assets, and return on equity as a measure of the company’s performance during the year. Corporate risk is based on the Taiwan Corporate Credit Risk Index (TCRI) as an assessment of the company’s responsibility for risk taking. The effectiveness of the independent director's part-time job is divided into the dummy ratio of the Dummy Variable and the number of independent directors who are consecutive variables (Continuous Variable) to measure the number of possible research biases in the variables. The results show that the independent director's part-time performance is positively correlated with the company's performance, and it is negatively correlated with the firm's risk. In addition, this study also found that there is a nonlinear relationship between the part-time position of independent directors and company performance and corporate risk.