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The Relationship among Independent Director, Firm Performance and Director Compensation
Date Issued
2007
Date
2007
Author(s)
Hu, Chun-Ting
DOI
zh-TW
Abstract
This thesis examines two research issues. First is the association between compensation for the members of board of directors and supervisors (hereafter “compensation of directors and supervisors”) and company performance. Second is the association between independent directors and percentage of compensation for directors and supervisors to net income (hereafter “percentage of compensation for directors and supervisors”). Percentage of compensation for directors and supervisors is defined as the proportion of compensation for directors and supervisors to net income. Using data obtained from Taiwan Economic Journal, Market Observation Posting System (MOPS), and company websites for the electronics companies listed in Taiwan Stock Exchange and GreTai Securities Market for the period 2003-2005, a total of 584 companies and 1,752 observations for the variables constitute the sample for this study. The empirical results show that compensation of directors and supervisors is positively and significantly associated with company performance. In addition, proportion of independent directors has no significant association with percentage of compensation for directors and supervisors. Using the median of the percentage of compensation for directors and supervisors to split the sample into two sub-samples and conduct the same analyses indicates that when the companies whose percentage of compensation for directors and supervisors is above the median, there is a significant and negative association between proportion of independent directors and percentage of compensation for directors and supervisors. Further, disparity between control right (number of directors) and cash flow right (number of shares owned) of ultimate controllers (owners) is positively correlated with compensation of directors and supervisors. Number of directors coming from ultimate controllers (owners) is negatively correlated with percentage of compensation for directors and supervisors. Finally, independent directors serving on the board for more than three companies tend to be associated with higher percentage of compensation for directors and supervisors.
Subjects
董監酬勞
獨立董事
公司績效
independent directors
supervisors
compensation
performance
Type
other
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Name
ntu-96-R94722031-1.pdf
Size
23.31 KB
Format
Adobe PDF
Checksum
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