The Key Factors of the Board of Directors, Impact on Firm Performance – A Case Study of Motherboard Industry in Taiwan

• Main Authors: Yu-Sang , Lin, 林榆桑
• Other Authors: 廖森貴
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/t545u9

碩士 === 國立臺北科技大學 === 商業自動化與管理研究所 === 95 === From those startling events of the asset operation such as ProComp Informatics Ltd., Pacific Electric Wire & Cable Co. and Rebar Enterprise Group, people had recognized how important the company governance is. However, recently fraud crimes and insider trading such as Chinatrust Bank, United Microelectronics Crop., Inventec Appliances and AU Optronics Crop., show us explicitly that we have to improve the capability of company governance. Otherwise, the negative results usually are around those firms. Therefore, this study will find out the relationship between the board of directors and operating performance. And those key factors also lead us to enhance the operating performance by reforming board of directors. First of all, present study is designed to probe into literatures and through face-to-face interview of five scholars and experts. In addition, these scholars and experts confirmed five major aspects:“Independent Directors”, “Ownership of Board of Directors”, “Structure of Boards of Directors”, “Ownership Structure” and “Salaries allocated to the Boards of Directors”. Subsequently, the study aims at finding those key factors of Board of Directors in regard to its outstanding operating performance. With questionnaire survey, the researcher interviewed a total of 28 professionals. Accordingly, the researcher further looks into the key factors and acquires some results via one means of Analytic Hierarchical Process (AHP). The major results are as follows: 1. The most important of key factors as firm performances are “Ownership of Outside Directors” and “Salaries allocated to the Boards of Directors”. 2. Those of experts have very different opinions at “Independent Directors” aspect. There are 46 percent of experts who believe in one fact that “Independent Directors” is one crucial issue, but another 36 percent of experts don’t recognize this aspect as the key factor. 3. Apply for feature of “Salaries allocated to the Boards of Directors”, the “Earning Distribution” will be more important than “Regulation”