What Causes the Board Independence?
|關鍵字:||公司治理;董事會;董事會獨立性;所有權結構;Corporate governance;Board of directors;Board independence;Ownership structure|
We set out in this study to identify the determinants of board independence with the sample of listed firms in Taiwan from 2002 to 2006 based on that independent boards have an important contribution to enhance corporate governance. The evidence shows that firms with larger size and greater opportunities of managers to consume private benefits tend to hire more independent directors. Besides, higher growth opportunities, as well as greater outsider influence provide the same positive effect on appointing independent directors. Furthermore, firms with greater proportion of family board members reduce the tendency to appoint more independent directors; the higher shareholding amongst family members provides the positive effect on board independence. However, firm age is found to have a contradictory effect to that reported in the prior studies. Firms which are more seasoned do not necessarily tend to hire more independent directors. We also compare board structures across different firm sizes and find that board composition in small and large firms is extremely divergent.
|Appears in Collections:||Thesis|