Corporate governance and operating efficiency performance: a comparison of banking industry between Taiwan and China

• Main Author: 呂晉
• Other Authors: 林良楓
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/00020840383169791277

碩士 === 國立政治大學 === 會計研究所 === 103 === The purpose of this paper tries to make a cross strait comparison between corporate governance and efficiency performance in banking industry. We apply data envelopment analysis and cross efficiency frontier analysis to measure and compare the performance of banking industry between Taiwan and China from 2008 to 2013. The empirical results reveal that Taiwan and China indeed have different efficiency frontier, and the cross frontier analysis suggests that the efficiency performance of China is much better than that of Taiwan. However, the scale efficiency of Taiwan had a better performance than that of China after financial crisis. Due to system difference, the cross strait comparison of corporate governance between efficiency performances denotes that Taiwan and China almost have opposite effects. China indicates a positive coefficient between bank’s stock holding ratio by government and efficiency performances. On the other hand, Taiwan indicates a negative coefficient, although both are statistically insignificant. The result suggests that the political power has a contrary influence for Taiwan and China. The percentage of independent directors is the only variable that statistically significant with pure technical efficient on both sides. However, which is negative coefficient associated with China, but positive coefficient associated with Taiwan. Therefore, we can conclude that the corporate governance practices have opposite influence on efficiency performance between Taiwan and China.