An Empirical Study on the Relationship between Board Characteristics and Capital Adequacy Ratio: Evidence from Commercial Banks in Taiwan

• Main Authors: Hsiao-Wen Kao, 高筱雯
• Other Authors: Hsiang-Lan Chen
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/28579582265094452273

碩士 === 國立高雄第一科技大學 === 財務管理研究所 === 100 === Financial industries are subject to high degree of regulatory control because of its high operating risk. The financial crisis in recent years has reflected the weakness of financial institutions in corporate governance and risk management. This paper investigated the relationships between board characteristics and capital adequacy ratios of listed and public issued commercial banks in Taiwan during 2008~2010. This study found that higher directors’ education levels, higher percentage of directors with experiences in financial industry and longer average board tenure will help the board to become more professional. Consequently, the capital adequacy ratios will be raised and the ability to withstand risk will be stronger.