A Study of The Relationship Between CEO Compensation and Operation Performance：The Moderating Effects of Board Characteristics

• Main Authors: Yeh, Yung-Chen, 葉永禎
• Other Authors: Huang, Shaio-Yan
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/g29w9h

碩士 === 國立中正大學 === 會計資訊與法律數位學習碩士在職專班 === 103 === Financial Supervisory Commission forced listed companies to set up the Independent Directors before the end of year 2015, except for some listed companies, meet the certain requirements. From 2007 to 2015, the board organization of listed companies concerning board characteristics in the corporate governance system should be one of the three types, including (1) having both of the supervisors and the independent directors, (2) having the supervisors without the independent directors, (3) having the audit committee instead of the supervisors. In the study, the listed companies are used as study sample, and the study period is from 2007 to 2013. I multiple the independent variable factor, the proportion of CEO variable salaries to CEO total salaries, by every one of the three moderating factors: setting the audit committee instead of the supervisors, having both of the independent directors and the supervisors, setting the compensation commission. The three cross multiply items are used as moderating variables to investigate the relationship between operating performance (EPS, ROE) of listed companies, and the establishments of the independent directors, the audit committee, the compensation commission, by multi factor line regression method. AS listed companies were requested to set up the Compensation Commission by Financial Supervisory Commission in 2011, the parent sample should be divided into two groups, the period of voluntary appointment of compensation commission (2007-2010), the period of forced appointment of compensation commission (2011-2013), and be tested. The empirical results reveal during the study period the operating performance (EPS) become worse when the board organization was the type of setting up the audit committee instead of supervisors, rather than the type of having supervisors without independent directors, and the operating performance (EPS) become better when the board organization was the type of having both of supervisors and independent directors, rather than the type of having supervisors without independent directors. The Compensation commission existed significant positive impact on EPS. The audit committee should govern the management of board, and agree the important decisions concerning finance and marketing. It is appreciable that the accounting transactions should be recorded and accessed with conservative accounting principles and the functions of audit committee have negative effect on operating performance (EPS).