The risk taking, financial performance and corporate governance consequences-empirical evidence from bank in Taiwan

• Main Authors: Chin-rong Cheng, 鄭錦榮
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/32799441552390041861

碩士 === 國立雲林科技大學 === 財務金融系碩士班 === 94 === Taiwan’s bank is facing merging, high credit card loan and high competition environment. How to supervise Taiwan’s bank to reduce bans risk and promote performance is more important than before. In this paper, we study the relation between managerial ownership, bank’s risk and performance from the view of corporate governance. In this study, we utilize 33 public banks including 623 quarters samples Taiwan and 623 quarter samples. We summarize our findings : (1) During year 2000 to 2005, the director ownership is decreasing and the director ownership pledge ratio is increasing. (2) The director ownership pledge ratio has positive relation with overdue loan or capital adequancy. This finding show higher risk for a company whose directors pledge a lot. (3) The manager’s ownership has negative relation with overdue loan and positive relation with ROA. This finding indicates stock related incentive plan could be considered a feasible way to reduce Taiwan’s bank risk. (4)The size of board and supervisor are not related to Taiwan bank’s risk management. (5) The institutional investor’s ownership has negative relation with overdue loan and positive relation with capital adequancy. This results show the institutional invrstor’s supervise do care Taiwan bank’s risk management.(6) We found the higher of control right and retained earning right, the higher risk of Taiwan’s bank.