The Association between Self-interested Board of Directors and Institutional Ownership

• Main Authors: Liao,Chen-Kai, 廖振凱
• Other Authors: 林美鳳
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/uqh7ve

碩士 === 國立彰化師範大學 === 會計學系 === 107 === After the financial crisis occurred in 2008, the issue of top manager was overpaid being reconsidered. Since 2008, the Taiwan Stock Exchange (TWSE) disclose a list of companies in which the directors have received excessive compensations while their companies have incurred losses in that accounting year(hereafter self-interested board of directors) on the Market Observation Posting System (MOPS). This study examines the relationship between the self-interested board of directors and institutional ownership. The results show that institutional investors hold fewer shares for firm with self-interested board of directors. In addition, the empirical results also find that domestic institutional investors hold fewer shares for firm with self-interested board of directors, but foreign institutional investors hold more shares for firm with self-interested board of directors, it indicates that domestic institutional investors and foreign institutional investors are difference in the interpretations of information and strategies of investment.