General Investor's and Institutional Investor's Beliefs on Corporate Governance

• Main Authors: Kun-Shien Yang, 楊坤憲
• Other Authors: Wen-Hsi Hsu
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/31635050209912451641

碩士 === 國立屏東科技大學 === 企業管理系所 === 96 === Since the scandals of Enron and WorldCom, corporate governance has become a hot management issue. According to the report by McKinsey & Company (2002), it indicates that many institutional investors have recognized that corporate governance is an important indicator for investment decisions. Therefore, in addition to setting regulations, the Government may exercise investor’s power to promote listed companies to improve their corporate governance mechanism. In view of previous studies, there are few research discuss the relationship between the corporate governance and the investor's beliefs. The current study developed a questionnaire based on the criteria set by the 「Taiwan Corporate Governance Association」, which considering six dimensions, including “shareholders' rights and interests”, “information transparency”, “the power of the board of directors”, “the function of supervisors”, “the discipline and communication of the management” and “stakeholders' rights, interests and social responsibilities”. This study investigated general investor's and institutional investor's satisfaction on corporate governance for Taiwan listed companies. In addition, the general investor's and institutional investor's beliefs on corporate governance are investigated. The premium that investors are willing to pay for a well-governed company is also explored. The results are as follows: 1. General investor's and institutional investor's satisfaction on corporate governance for listed companies are significantly different. The institutional investor's satisfaction is lower than the general investor's satisfaction. 2. If general investors and institutional investors are satisfied with the practice of corporate governance for listed companies, they are inclined to invest more. 3. Both Taiwan general investors (74.8%) and institutional investors (87.1%) are willing to pay a premium for a well-governed Taiwan’s companies. The percentage premium for the general investors and the institutional investors are 8.6% and 14.9% respectively.