The effect of controlling shareholder ownership and board on the relationship between derivative and performance

• Main Authors: Ching-Wen Wang, 王靜雯
• Other Authors: Ching-hsiang Lin
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/37376028709617931375

碩士 === 國立高雄第一科技大學 === 財務管理所 === 98 === Abstract Companies engage in financial derivative transactions to reduce insufficient investment, the cost of financial distress as well as expected tax burden and to increase the company''s value. However, some of those companies such as ChungHwa Telecom and Lee Chang Yung Chemical report large amount of loss in recent years. Board plays an important role in the financial derivatives transactions. This study investigates how the controlling shareholder ownership structure and the board affect the relationship between financial derivative transactions and performance of the company. Empirical results show: 1. Controlling shareholders cash deviation right and CEO duality have negative effects on the relationship between company performance and financial derivatives transactions. 2. The independent directors act positively with the relationship between financial derivative transactions and performance of the company.