Family Control, Corporate Governance and Internationalization: Evidence from Business Groups in Taiwan

• Main Authors: Lan-Yun Chang, 張籃云
• Other Authors: Jwu-Rong Lin
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/97342928286680663560

碩士 === 東海大學 === 國際貿易學系 === 98 === This study examines the relationships among the family controlled ability, corporate governance and internationalization in Taiwanese business group. This study contains multiple internationalization index including：The Foreign Assets to Total Assets in China and other areas, Export Sales to Total Sales and The numbers of foreign subsidiaries in China and other areas. Cross-section data from various industries which are listed on the Taiwan Stock Exchange (TSE) and Over-the-Counter (OTC) in 2002 and 2007 are collected, and we take business groups as sample groups. On the empirical model, first, we use unpaired t test to test whether there is significant difference in internationalization index, the family controlled ability, and corporate governance. Moreover, since the regression of Foreign Assets to Total Assets in China and other areas and Export Sales to Total Sales possibly exist in the Heteroskedasticity, therefore we use OLS or GLS to estimate the influence of the family controlled ability and corporate governance on internationalization. Besides, the numbers of foreign subsidiaries are integer count data, thus we use the Count Data Model by taking the Poisson or Negative Binomial method to estimate the influence of the family controlled ability and corporate governance on the number of foreign subsidiaries. The empirical findings show that: (1) There is significant difference in internationalization index, the family controlled ability and corporate governance. (2) The family controlled ability, such as strong family-controlled and weak family-controlled are significantly positive or negative associated with internationalization index. Family ownership and the concentration of family-controlled are significantly negative associated with internationalization index. (3) Board size and CEO duality are significantly negative associated with internationalization index. The higher the ratio of outside directors and institutional holding will be more significantly positive associated with internationalization index.