An Analysis of the Relationship between Good Performance Companies and Corporate Governance
Date Issued
2006
Date
2006
Author(s)
Chen, Yen-Ju
DOI
zh-TW
Abstract
After Asia’s financial meltdown in 1997, serious corporation fraudulence continuously happened in the world, such as “Enron” in U.S. and “Infodisc”, “Procomp Informatics” in Taiwan. The major cause of these events is weak corporation governance. For this reason, the government (including Securities and Exchange Commission, Ministry of finance and related organization), the public opinion and the academic community start discussing the hot issue of corporate governance in the world.
In my research, I focus on the relationship between internal corporate governance mechanism (including the components of director and supervisors and ownership structure) and corporation performance. About corporation performance, the traditional research directly uses operation performance measure (for example: ROE, ROA, Tobin’s q, et al.) as the dependent variable. Nevertheless, I choose five performance measures (containing average profit growth rate, average operation income rate, average EPS, average ROA and accumulated stock return) to classify sample companies. After sorting, I pick out 77 good performance companies. In accordance with operation income and industry, I use pair sample method to select 77 bad performance companies and 77 ordinary performance companies. So, the total samples are 231 companies. The empirical results are summarized as following:
1. The size of supervisors and the number of manager serving as board or supervisor are positive relation with performance.
2. The size of board and the number of ultimate control shareholder serving as board are negative relation with performance.
In a word, this research result suggests that the investors may pay attention to the components of director and supervisors for any investment target. At the same time, control shareholders and governance authorities should understand that improving corporate governance is not only increasing operation performance, but also good for company reputation.
Subjects
公司治理
董監事組成
股權結構
經營績效
corporate governance
the components of director and supervisors
ownership structure
operation performance
Type
other
File(s)![Thumbnail Image]()
Loading...
Name
ntu-95-R93722008-1.pdf
Size
23.31 KB
Format
Adobe PDF
Checksum
(MD5):d1ad9225ccad7d64e8d19cf368847cad