The Impact of Independent Director and Dividend Policy on Corporate Performance

• Main Authors: CHEN,YI-TING, 陳怡婷
• Other Authors: YU, HUI- FUN
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/85390592590229437211

碩士 === 中國文化大學 === 國際企業管理學系 === 105 === The purpose of this paper is to examine the impact of independent directors and dividend policy on company performance. This study aims to identify the significant fi-nancial ratios and corporate governance factors that affect firm performance. The re-searchers sought to understand if a company’s dividend policy may raise its earnings per share (EPS) and stock price, hence improving company performance. The researchers selected 102 listed Taiwanese companies and applied K-S test, M-U test, Pearson’s chi-squared test, variation inflation factor (VIF) test, and logistic regression analysis in order to establish financial early-warning models. Based on the empirical results, two hypotheses were validated: 1. Independent directors, acting as an internal corporate governance mechanism, have a significant positive effect on company performance. 2. Dividend policy regarding share repurchase has a significant positive effect on the in-crease of EPS and share price. The significant financial ratios affecting firm performance included those in the categories of financial structure, profitability, and cash flow. The significant non-financial factor was associated with corporate governance. The re-searchers provided recommendations in both financial and non-financial aspects. Finan-cially, managers should repay firm’s debt in order to reduce debt to assets ratio. Then, managers should make a dividend policy of buying back treasury stocks in order to re-duce the number of shares outstanding. These two approaches can increase a company’s EPS and share price. Finally, independent directors should actively participate on the board to enhance firm performance.