Institute of Business and Management
|Keywords:||資本支出;投資機會;公司治理;過度投資;Capital Expenditure;Investment Opportunity;Corporate Governance;Over Investment|
This study used panel data from 2003 to 2007 to investigate the quarterly capital expenditure ratios of the listed companies in Taiwan. The empirical results proved that seasonal effects did exist in the capital expenditure ratios of the listed companies in Taiwan. This study also discussed the effect of corporate governance mechanisms on investment strategies. The empirical results showed that the companies with either no independent board directors or relatively low institutional investor shareholdings could experience agency problems, leading to managers proposing opposite investment strategies to investment opportunities. This study also discovered that excessive investment leads to inferior firm performance, and insufficient investment leads to superior firm performance. The companies with no independent board directors, relatively low manager shareholdings, and relatively low institutional investor shareholdings could result in excessive investment. This study further discovered that the companies possessing the characteristics of a chairman of the board as the general manager, independent board directors, family business, larger board, high director shareholdings and high institutional investor shareholdings can propose superior capital expenditure strategies to create more corporate value due to relatively comprehensive supervisory mechanisms and fewer agency problems.
Journal of Management and Systems
|Appears in Collections:||Journal of Management and System|
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