| Summary: | 碩士 === 國立臺灣大學 === 會計學研究所 === 92 === Abstract
Traditionally, the management of family-owned businesses rely more on personal managerial skill and centralised shareholding structure. As the consequence of authoritative management system frequently adopted as well as the intricate and delicate interaction between senior top level executives and the successor from younger generation of the family; generally speaking, introduction of modernised corporate governance system into family-owned businesses is rather a frustrating challenge; especially when compared to introducing such system into companies involved in emerging high technology industry, which are normally featured with discentralised shareholding structure and strong external restraint. Nevertheless, it is rather dangerous to conclude that emerging high technology corporations are generally equipped with better corporate governance than family-owned business involved in traditional industries. Taking the world-shaking Enron case as example, endorsed by prestigious group of independent directors, excellent financial performance assured by the top big five accounting firm, and outstanding investment evaluation ranking endorsed by leading Wall Street Financial Analysts, Enron eventually crashed due to managerial fraud and intentionally fabricated financial statements. Accordingly, further to the elaborately-structured system itself, the goal of implementing corporate governance system cannot be achieved without sincere subscription to and implementation of the system by the management authorities as well as strong supervising power from outside of the company.
Without being implemented, even a system which is more than perfect means nothing. To enhance the management’s sincerity/faithfulness in implementing corporate governance system, further to self-discipline, an external regulatory mechanism must be established. Through external supervision powers exercised via oversight from securities analysts, credit rating institutions, financial news media, the authorities concerned, shareholders, and customers, the transparency of company information may be significantly enhanced. Meanwhile, it is strongly recommended that the authorities concerned should lift the restrictions set on hostile takeover to liberalise the competition amongst companies and keep top level managements of companies on alert so as to enrich the insight of corporate governance.
The company at issue (hereinafter referred to as “the Company”) is a typical family-owned business based in Taiwan. The Company is now striving ahead to adapt itself to the regulatory requirements stipulated by the governing authorities and has commenced to incorporate corporate governance concept into its managerial system. The purpose of this study is to explore the possibility of enhancing enterprise value through introduction of corporate governance system into specific company by conducting comparisons amongst the operations of the Company and peer companies in the same industry from finance, business operation and corporate governance aspects respectively. Besides, by referring to the measures adopted by Taiwan Semiconductor Manufacturing Corporation, the benchmark enterprise in corporate governance field, this study also identifies the weaknesses of the Company to facilitate improving its performance. On the other hand, observations gathered though interview are also adopted to indicate difficulties/obstacles frequently confronted during implementing corporate governance system in family-owned business and propose suggestions to the Company as the result of such study.
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