The Effect of Market Concentration on Corporate Governance and Firm Performance－Evidence from Listed Firms of Taiwan

• Main Authors: Ju-Hsuan Cheng, 鄭如軒
• Other Authors: An-Lin Chen
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/10062335163924007408

碩士 === 國立中山大學 === 企業管理學系研究所 === 100 === In this paper, we examine the effects of market competition on corporate performance. In the first stage, we use Herfindahl-Hirschman Index to measure the degree of competition and markets are divided into three categories, namely competition, moderate competition and oligopoly. Fama-French is used to examine whether there is abnormal return existing in competition market. Then we use the index constructed by Chen, Kao, Tsao and Wu (2007) to decide the performance of internal governance and use it with competition degree to conduct the regression. This paper finds the following results, 1. the moderate competition market is reducing; 2. the portfolio of firms in competition markets outperforms that in oligopoly; 3. market competition has positive effect on ROA, ROE, EPS and Tobin’s Q; 4. market competition and corporate governance are complementary.