The Effect of Ownership Structure on Board Composition-Evidence from Taiwan
| Autor: | Wang Wei-Chih, 王偉志 |
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| Rok vydání: | 2005 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 93 In general, the foreign researchers regard board composition as exogenous variable and neglect that the controlling shareholders may affect board composition through the ownership structure, therefore we regard board composition as endogenous variable.Additionally, adding professionalism in board composition will help us know the controlling shareholders’ behavior more detailed. The research data are collected from 584 listed companies in 2003. Adopting the method developed by Laporta-de-Silanes and Shleifer(1999),we find the controlling shareholders of firm and then calculate their control rights and cash flow rights. The empirical study shows that the controlling shareholders with higher cash flow right will have higher proportion of board seats.The higher the cash flow right ratio is, the lower proportion of board seats is. If the controlling shareholders have higher cash flow rights, the corporate value will be better. Otherwise, if the cash flow right ratio is higher, the corporate value is worse. Finally, if the controlling shareholders hold larger proportion of board seats, the corporate value will be worse.The higher independence of board composition is, the greater the corporate value will be. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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