| Summary: | 碩士 === 國立高雄科技大學 === 風險管理與保險系 === 107 === Owing to the financial crisis in 2008, the stock market has continued to drop, and the global economy has been frustrated as well. Therefore, a financial institution needs to pay attention on corporate governance mechanisms. The perfect corporate governance can reduce the likelihood of risk and mitigate impact. Particularly, the board of directors does not understand the risks and tolerate unfair corporate ethics, which would lead to distrust of the company and the financial market. Moreover, corporate governance failure might become the epicenter of financial and economic crisis. Consequently, the impact of the profitability of the financial holding company on corporate governance will be investigated in this study.
The data of 16 domestic listed financial holding companies from 2008 to 2018 were collected as samples. Three methods of empirical analysis were adopted and the investigations were divided into three parts as followings. Firstly, the factor analysis was used to integrate the 18 corporate governance indicators into four dimensions, which are the composition of directors and supervisors, shareholding structure, management type, and major shareholders’ intervention in the stock market. Secondly, we adopt cluster analysis to divide the corporate governance indicators of the financial holding company within 11 years into 5 clusters. The results show that there are significant differences among the four indicators in different clusters. The clustering results demonstrated the performance of the company during the period. Among them, Cathay Financial Holdings performed steadily in the initial year, and its management type was excellent in the subsequent years. In addition, the major shareholders of CTBC Financial Holding Company strongly got involved in the stock market in the early years, and all indicators performed smoothly in the subsequent years; however, the composition of directors and supervisors was poor. Thirdly, the regression analysis was employed to explore the impact of the four corporate governance indicators of financial holding company on earnings per share and return on shareholders’ equity. The results show that if the company strengthens its management, the profits can be increased. But the deeper the major shareholders are involved in the stock market, the worse the profit is.
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