Board Independence, Family Control, and Performance in Taiwanese Listed Semiconductor Companies

• Main Authors: QianLong Kweh, 郭乾隆
• Other Authors: Wei-KangWang
• Format: Others
• Language: en_US
• Online Access: http://ndltd.ncl.edu.tw/handle/91241290405573073439

碩士 === 元智大學 === 商學碩士班(會計學程) === 100 === The purpose of this study is to investigate the relationship between board independence, family control and management, and corporate performance in Taiwanese listed semiconductor companies. This study also aims to examine the moderating effect of family control and management on the relationship between board independence and corporate performance. This study applies dynamic slacks-based measure (DSBM) model to estimate firm operating efficiency scores. Truncated regression with a bootstrapping procedure is employed for multivariate analysis using a sample of 44 Taiwanese listed semiconductor companies for the period of 2005-2010. Our findings illustrate that the presence of independent directors and the separation of Chairman and CEO positions are significantly positively related to firm operating efficiency. Family ownership has a negative impact on firm operating efficiency. The results also show that the positive effect of proportion of independent directors on firm operating efficiency is significantly weakened in family companies. This study provides Taiwan’s Financial Supervisory Commission with a practical insight for enhancing corporate governance best-practice principles regarding the true independence of the independent directors, especially for family companies.