Board Structure and Firm Performance: Evidence from Listed Pharmaceutical and Biotechnology Firms in Taiwan

• Main Authors: Chen Chia Chang, 陳家章
• Other Authors: 潘立芸
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/88112592578228898343

碩士 === 逢甲大學 === 經營管理碩士在職專班 === 101 === In this thesis, I attempt to examine the linkage between board structure and firm performance in listed pharmaceutical and biotechnology firms in Taiwan. In particular, I suspect that board size, CEO duality, and the percentage of independent directors on the board play an important role to affect the function of the board and therefore firm performance. With a sample of 338 firm-year observations between 2002 and 2007, my empirical results indicate that the percentage of independent directors on the board is positively correlated with firm performance. However, the relationship between firm performance and board size as well as CEO duality in contrary is inconsistent as alternative measures or subsamples are applied. While pharmaceutical and biotechnology firms attract investors’ attention recently due to their growing market and revenues, researches on the role of board of directors in this industry remains limited. As the results from this thesis highlight the percentage of independent directors on the board is relatively important compared with other characteristics of board structure, recent act to encourage or force firms to recruit independent directors in several countries, including Taiwan, seems appropriately to reach the goal of protecting shareholder wealth.