The Impact of Compensation Committee on the Relationship between Family Firm and Firm Performance

• Main Authors: YANG RU-AN, 楊茹安
• Other Authors: Yu-Shun Hung
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/17403353686902264892

碩士 === 輔仁大學 === 會計學系碩士班 === 102 === In order to ensure compliance with corporate governance norms, the R.O.C. Securities and Exchange Act was amended in 2010 to force listed companies to establish a Compensation Committee by the end of 2011. This study uses sample companies in Taiwan to investigate the influence of establishing a Compensation Committee on family firms and firm performance in the period 2009 to 2012. As a result, according to Hypothesis 1, on comparing Compensation Committees established (i.e.2011-2012) or not (i.e.2009-2010), there appears to be no significant correlation with market performance between family firms and non-family firms. Moreover, after Compensation Committees were established, the non-family firms are showing significantly better market performance than family firms. According to Hypothesis 2, on comparing Compensation Committees established in family firms versus non-family firms, there is no significant correlation seen between CEO’s compensation and accounting performance. We also find that after Compensation Committees were established, the CEO’s compensation is positively correlated with market performance in family firms, as compared to non-family firms.