Board Composition, Investment Policy and Firm’s Performance

• Main Authors: Po-Ya Tung, 董博雅
• Other Authors: Chun-An Li
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/77923974967234571284

碩士 === 雲林科技大學 === 財務金融系碩士班 === 96 === This study regards the listed firms in Taiwan as the study objects to exam the relation of board of directors’ composition towards the firm’s operating performance; and also, investment decision variables are added so as to understand whether the difference of board of director’s composition would have influence towards the relationship between the firm’s investment decision and operating performance. The empirical research period is from 2002 to 2006. Since the data is time-series and cross-sectioned, LM test and Hausman test are used to examine the suit model. The test result shows that random effect model is best. The empirical result shows that both of the board of directors’ size and the board chairman’s dualism all have significant explain power towards the firm’s investment decision and operating performance. Generally speaking, the composition of board of directors would really influence the levels of the company’s investment decision and operating performance.