| Summary: | 碩士 === 開南管理學院 === 財務金融系碩士班 === 93 === Recently, there were quite a number of accounting scandals and financial fraudulence in US and Taiwan. Therefore, the government hope to enhance corporate governance mechanism. They enforce that initial public offerings must set up at least two independent directors and one independent supervisor since February, 2002. The major of this study investigates the independent of director announcement effect that can improve investor's confidence and produce abnormal return which can increase the value of the company and shareholder.
The research data were collected by 94 companies which were announced recruiting independent director between 2002 to 2004. Using the event studying get independent director announcement effects, the difference of independent directors and independent supervisor, the effects of industry, the number of independent directors and independent directors' background. As a result, the announcement of director could produce abnormal return, but the technology industry did not significantly positive, the number of independent directors were no more 2 people. Depending on the independent and professional directors are more useful in corporate.
Finally, using multiple regression model test the factor of abnormal return from the effects of independent director. Using the character of the board, the performance of corporation, development and the directors get more other jobs. In conclusion, if the company has the higher stock holding ratio of the directors(supervisors), the higher stock holding ratio of the institutional investors have, higher percentage of the shares as collateral by the board of directors, the lower corporate performance in the earlier, the CEO can not be the chair man, the directors get fewer other jobs, it will get positive abnormal return.
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