Does Successor Revive? The Effects of Corporate Governance and Family Succession on Investment Policy.

• Main Authors: Tang,Ya-Chun, 湯雅淳
• Other Authors: Yeh,Yin-Hua
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/sy5u4e

碩士 === 國立交通大學 === 財務金融研究所 === 104 === It is because of the replacement of the main policymaker and managerial team that succession events have significant effects on investment policy; if successors are capable of improving the corporate governance of the company, it is possible to alleviate the financial constraints and overinvestment problems and thus influence their investment policy. This paper is the first one to explore the impacts of succession events, corporate governance and specialized assets on investment policy. I took the listed companies with replacement of key policymaker from 1997 to 2012 in Taiwan as samples and found that the investment-cash flow sensitivity will decline after succession due to the enhancement of corporate governance. This result is more applicable and significant in family succession.