The Impact of Independent Directors and Corporate Governance on Corporate Performance: Evidence from Family- and Nonfamily- Controlled Firms

• Main Authors: Yu-Lin Hong, 洪郁琳
• Other Authors: Yuh-Ling Su
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/87955782323077678432

碩士 === 國立臺灣海洋大學 === 航運管理學系 === 97 === In recent years the domestic and foreign enterprise corrupting practices case one after another incessantly. The Rebar Group scandal which erupts in 2007, seriously impacted on our country economic development and financial stability, once again attracted the attention of corporate governance. A company’s board of directors is at the core of corporate governance. In order to promotion independence for the board of directors, since February 2002, Taiwan Stock Exchange Corporation and Over-The-Counter(OTC) have demanded that two or more independent directors is one of the requirements for any business seeking to apply for an initial public offering (IPO). Amendment to the Securities and Exchange Act took effect on May 30, 2006. The Act expressly provides that a public company may appoint independent directors in accordance with its articles of incorporation. The Competent Authority, however, must as necessary in view of the company's scale, shareholder structure, type of operations, and other essential factors, require public companies to appoint independent directors, not less than two in number and not less than one-fifth of the total number of directors. To explore whether independent directors and corporate governance of family- and nonfamily-controlled firms are beneficial to corporate performance, this study performs, with multiple regression analysis on a sample base of 190 companies which had independent directors before the end of 2007. The result is outlined as follows: 1.Family- and nonfamily- controlled firms after set up the independent director to corporate performance not to be able to have the promotion function. 2.Independent directors have positive effect on ROE and PB rate in nonfamily-controlled firms, but there is no significant relationship in family-controlled firms. 3.Independent directors and supervisor have positive effect on PB rate in nonfamily-controlled firms, but there is no significant relationship in family-controlled firms. 4.No significant relationship was found between corporate governance and independent supervisor and corporate performance in family- and nonfamily-controlled firms.