The Influence of Function of Independent Board Director on Enterprise Performance
|關鍵字:||公司治理;獨立董事;經營績效;董事會功能;Corporate Governance;Independent Director;Financial Performance;Functions of board|
Corporate governance has become an important issue in business management in recent years and introducing independent members into the board of directors has been taken as a key mechanism for improving corporate governance. Many studies have focused on the issue of whether business performance would be affected by the use of independent board directors. Nonetheless, the present study explored the effect of the functions served by independent board director on enterprise performance. The functions of independent director were divided into six categories – monitoring, warning, performance evaluation, consultation and suggestion, business ethics maintenance and motivating. By using them, this study discussed the influence of independent director’s participation in the functions on enterprise performance. The findings showed that independent director’s participation in monitoring function had a significant positive correlation with enterprise performance. Independent director’s’ participation in performance evaluation function had a significant negative correlation with enterprise performance. The influences of independent board member’s participation in the other functions, however, were not significant. It is expected that the result of this study may help us understand better the effect of employing independent board member’s on business performance , a mechanism for improving business governance, implemented since 2002.
|Appears in Collections:||Thesis|