| Summary: | 碩士 === 國立高雄應用科技大學 === 國際企業系 === 97 === A procedure is ever since the occurrence of recent financial distresses such as the bankruptcy of Lehman Brothers Co., and Iceland, the issue of corporate governance of financial institutions has raised enormous attentions. Researchers have argued that improving corporate governance could provide good remedy for potential financial distress. This research aims to develop a new index of corporate governance to evaluate the relationship with corporate performance, stock return, and firm value. The new index is based on equity structure, responsibility of the board of governors, transparency of financial reporting, debt transactions of relatives, and collateralized transactions of governors. Our data are sampled from all 37 financial listed companies in Taiwan Stock Market in the period of 2001-2007. It is found that corporate governance is significantly, positively related to corporate performance and firm value, while there is no significant evidence that corporate governance is related stock return. It is possible because of information asymmetry for the outsiders.
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