A Study of the Relationship among Corporate Governance, Firm Performance and Enterprise Value

• Main Authors: HSU,CHIH-CHAO, 許智超
• Other Authors: WU,RUEY-SHAN
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/66956121935976679952

碩士 === 國立臺北大學 === 企業管理學系 === 93 === One of the main reasons of the Asian financial crisis in 1997 and the accounting fraud cases, such as Enron and World Com, etc. in U.S.A in 2002 is that the mechanism of corporate governance is not healthy enough. After a succession of fraud cases, besides causing the research upsurge about the relevant issues of corporate governance in the academia, and the relevant decrees to strengthen the corporate governance mechanism made by the governments of various countries. The results of this study are as below： 1. The composition of board：There is a positive relation between the percentage of institutional directors of the board and both the firm performance and enterprise value. There is a negative relation between the size of board and both the firm performance and enterprise value. These indicate that a small size board is more efficient than a big size board. There is a positive relation between the size of monitor and the firm performance and enterprise value. There is a positive relation between the percentage of professional manager of the board and the firm performance and enterprise value. These indicate that monitors can supervise the board of directors making policy effectively, and the professional manager's knowledge and management skill have positive influence on company's management. 2. The structure of ownership：There is a positive relation between the percentage of ownership hold by directors and monitors and firm performance. This result is consistent with hypothesis of convergence of interest. However, there is no obvious relation to the enterprise value. There is a negative relation between the shares as collateral by the board of directors and the firm performance and enterprise value. There is a positive relation between the percentage of ownership hold by a financial institution and the firm performance and enterprise value. This result is consistent with the hypothesis of efficiency monitoring. 3. The related party transaction：There is a positive relation between both the percentage of purchase and sales about the related party and the firm performance and enterprise value. This indicates that the related party’s stocking, sales can reduce the operating cost, and raise business efficiency. There is a negative relation between the related party transaction and the firm performance and enterprise value. There is a positive relation between both the percentage of account payable and accountable receivable about the related party and the enterprise value, and, however, it is no obvious relation to firm performance. 4. There are obvious different in the items of this research from firm performances and enterprise value groups. This result also indicates the better corporate governance the higher firm performances and the enterprise value. Key words：corporate governance, the related party transaction, the structure of ownership, the composition of board