The Effect of Composition of the Board and Family Businesses on the Operation Performance

• Main Authors: Yueh-Chin Chen, 陳月琴
• Other Authors: Hsueh-Lan Yang
• Format: Others
• Language: zh-TW
• Published: 104
• Online Access: http://ndltd.ncl.edu.tw/handle/82850059196888843598

碩士 === 南臺科技大學 === 企業管理系 === 103 === This paper aimed to investigate the correlations among constitution of boards of directors, family enterprises and operating performance. Targeting Taiwan’s TSEC and OTC-listed companies, this study collected the financial statements and data from the Taiwan Economic Journal (TEJ) for the period from 2009 to 2013, on Taiwan’s OTC-listed industries, and adopted statistical methods, including basic descriptive statistics, correlation analysis, VIF test and regression analysis to compile, analyze and interpret the data. The results showed: in terms of the constitution of boards of directors, when Return on Asset (ROA), Return On Equity (ROE) and Earning per Share (EPS) were the variables of operating performance, the ratio of independent directors showed a positive effect, whereas the size of boards of directors and president serving concurrently as the general manager presented a negative effect. In respect of family enterprises, non-family enterprises outperformed family enterprises, with the latter showing a negative effect. Among the variables, the size of boards of directors, independent director ratio, president concurrently serving as the general manager and family enterprises all had significant effects on the operating performance proxy variables of ROA and EPS. The empirical results can provide reference for the company’s stakeholders, especially for the investors and the company’s managers who attach great importance to the performance of ROA and EPS.