Impact of Excess Control on Corporate Fraud and Performance: Corporate Governance Perspective

• Main Authors: Ming-Yeh Lai, 賴明業
• Other Authors: Ching-Jung Luan
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/64v5cp

碩士 === 國立東華大學 === 國際企業學系 === 106 === Fraud, in the field of corporate governance, has been paid more attention in the past decades, and internal control plays a critical role in the issues to protect investors and prevent fraud. And, excess control has been argued as an issue of internal control and may make fraud occur in more likelihood. The purpose of the study is to examine the relationship between excess control and corporate performance. In addition, we also investigate if there is a mediation effect of fraud and if there is a moderating effect of well-established corporate governance mechanism, such as independence directors. Employing 280 Taiwanese frauds from SFIPC （Securities and Futures Investors Protection Center ） and the financial data from TEJ （Taiwan Economic Journal）, we collect the data for the study in which 1,590 publicly listed companies covering the periods between 2002 and 2016 are sampled to test the proposed hypotheses. The empirical results show that the excess control is significantly negatively related with corporate performance. Furthermore, fraud plays a mediating role between excess control and corporate performance. These findings can provide policy makers, practitioners the effective practices in corporate governance mechanism improvement as well as the researchers concerning the research stream of fraud as different level of analysis.