The Relationship between Political Connections of Directorate and Operational Performance-Case of Taiwanese Banking Industry

• Main Authors: Jun-Lin Chung, 鍾任林
• Other Authors: Hai-Chin Yu
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/97353391600277068086

碩士 === 中原大學 === 國際經營與貿易研究所 === 101 === The purpose of this research is to explore the relationship between the political connections of directorate and the operational performance of banks in Taiwan. Different from previous research, this study focuses on ex-government officials who were assigned or after retired to be a member of the directorate in a bank exploring whether those members in the bank could impact the bank business and operational performance. Government plays a critical role to allocate social resources. Therefore, possessing a good government-business relation a bank may become the beneficiary of governmental policies. It helps the bank to practice various business developments, such as establishing a new branch or internal and international new business. In the condition of political connections, the percentage of those members, even pre-official positions in the government of those ex-government officials might influence the operational performance of the bank. When the directorate cultivates a good relationship with relevant departments of government, it is worth to consider whether this relation could benefit the bank to take a better opportunity developing its business. This research plans to perform an empirical test through collecting the lists of the directorate of banks and bank performance data from 1992-2011 (ex. Tobin’s Q, return on assets, return on equity and Earnings Per Share) in Taiwan. If the results show that the members of the directorate of a bank who have political connections could improve the operational performance of a bank. It presents that this relationship definitely plays a significant role to influence bank performance and increase more chances to develop its business.