A Study on the Relationship between Corporate Governance and Financial Distress

• Main Authors: Yu-Chuang Hsu, 許瑜娟
• Other Authors: Tsoyu Calvin Lin
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/57534400094723420531

碩士 === 朝陽科技大學 === 財務金融系碩士班 === 92 === Ever Since the beginning of the Thailand financial crisis in July 1997, which also caused the chain reaction in the other countries’ financial crisis, therefore caused the global economic regression. From 1980, all of countries no longer enjoy the sweet results of high economic growth , on the contrary, suffered the painful results of economic regression. The concept of corporate governance had been raised since the early 1970, however after the 1997 Asian financial storm happened, the issue of corporate governance had been discussed broadly among all of the governments, industries and economic and law scholars. Even though Taiwan did not suffer painful losses in 1997 Asian financial storm, however Taiwan still face the domestic financial storm which happened in 1998. Currently the SEC had aggressively promoted the importance of corporate governance and hopefully may reduced the possible crisis in the domestic financial storm. The previously research mainly focused on financial analysis or corporate governance to explain the early prevention in financial crisis, however our research will focused on the correlation between the corporate governance and financial statements. In our research, the major research samples and periods were based on the public companies listed in the Taiwan Securities Exchange Company since the period 1996 to 2002. Through the similar industries samples with almost the same capitals, we were proceeded the “one on one match” comparison, and therefore built up the three-year series prediction model among the 62 financial crisis and healthy companies. Under the Logistic Regression Model, We built up 8 obvious variables where included 5 variables related to corporate governance and 3 variables related to financial statements. From the broadly definition of corporate governance which included the financial statements, the above 8 variables were related to corporate governance and may be helpful for the SEC and the users of financial statements for further research, and therefore set up the identification standards for the investors and other related persons to abide by.