Institute of Business and Management
|關鍵字:||獨立董監;股權結構;公司特性;績效;Independent Board Member;Ownership Structure;Firm Characteristic;Performance|
This study investigates the impact of ownership structure and firm characteristics on decisions of having independent members on the corporate boards and its relation to firm performance. Since well-performed firms are usually perceived to be less risky, we propose the self-selection hypothesis predicting that better performed firms tend to have more independent members on their board. We find that firms with greater shares held by blockholders and insiders (firms with higher deviation of voting rights from cash flow rights and family-controlled firms) are significantly and positively (negatively) associated with the board independence. We also find that firms with poorer prior performance, operating in the electronic industry, facing greater market competition and larger firm size are associated with greater board independence. Finally, after controlling prior performance, we observe a more obvious improve (decline) trend in subsequent performance for boards with poor (better) prior performance and independent members. Thus the evidence does not support our self-selection hypothesis and the firms with poor prior performance and independent members have a positive effect on subsequent performance.
Journal of Management and Systems