Board Independence, Board Capital and Product Diversification: Evidence from Electronics Industry

• Main Authors: Yi-Shiuan Chen, 陳憶萱
• Other Authors: Hsiang-Lan Chen
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/36895581215188173350

碩士 === 國立高雄第一科技大學 === 財務管理研究所 === 101 === The diversification is one of the most important policies for enterprises development. This study explores the effect on board independence, board capital and product diversification from agency theory and resource dependence theory. This study uses a sample of listed companies of electrical in Taiwan from 2008 to 2011. The board independence is based on the ratio of independent director seats and the CEO duality. The board capitals are determined by the educational level, the experience of being an executive manager, and board members with multiple appointments. The study shows that: (1) The ratio of independence director seats, the CEO duality, the educational level, and the experience of being an executive manager have remarkably positive correlation with product diversification. (2) The board members with multiple appointments have significant negative correlation with the product diversification. Hence, if the corporation wants to develop the product diversification, it has to employ the directors with higher educational level and abundant experience who can apply the professional knowledge and experience to the operation for product diversification.