A Study of the Relationship of Product Life Expectancy and Board Attributes
Date Issued
2005
Date
2005
Author(s)
Chiu, Wen-Chi
DOI
zh-TW
Abstract
Since most previous studies on corporate governance used to observe the difference between high technology firms and traditional firms and few articles categorize the sample with product characteristics, we purpose to investigate board composition and characteristic among the firms with different product life expectancy and to discuss the connection between growth factors and corporate governance.
Consulting the research on clock-speed conducted by Charles H. fine, we choose Taiwan listed companies in personal computer industry, I.C. industry and consumer electronic industry as samples of firms whose products have short life expectancy, choosing Taiwan listed companies in mechanism industry as samples of firms whose products have moderate life expectancy, choosing Taiwan listed companies in petrochemical, paper and steel industry as samples of firm whose products have long life expectancy. The study began with a fundamental analysis of the sample data and used the Kruskal-Wallis Test and the analysis of correlation on different variables according to their properties.
We find that variables of growth and board attributes are highly correlated, especially for the variable of growth, ratio of research and development expense. Kruskal- Wallis tests for differences in the distributions of three categories indicate that there are substantial differences in the board composition and characteristics, suggests that the three groups of firms use different approaches to control agency problems. As the product life expectancy gets shorter, the companies tend to employ a greater proportion of inner directors and independent directors, smaller proportion of institution directors, family directors and largest shareholder- affiliated directors. In addition, as the product life expectancy gets shorter, the directors tend to enhance their ownership; chainman of board gets younger and tends to pursue and complete a higher academic degree.
Subjects
產品壽命
特性
組成
board
composition
characteristic
product life expectancy
SDGs
Type
other
File(s)![Thumbnail Image]()
Loading...
Name
ntu-94-R92722041-1.pdf
Size
23.31 KB
Format
Adobe PDF
Checksum
(MD5):fb7babe9f2ed88e923419fcab46f609c