Do Director Stockholding and Pledge Ratio Matter With Financial Crisis ? Evidence From Taiwan
| Autor: | Hisn-Lin Hung, 洪昕琳 |
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| Rok vydání: | 2006 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 94 The purpose of this research is to discuss the effects of the board members’ shareholding percentage and pledges on the financial crisis of a company, and to further investigate whether or not the board members’ shareholding pledges and shareholding percentage will create an impact on such a company’s operating achievement. The result of this research shows a positive return on the operating achievement. As the shareholding percentages of the board members increases, the bailed cost decreases respectively, and the chances of the company facing financial crisis will decrease proportionally as well. The board members’ shareholding pledges are originally considered as individual acts and have no obvious relationship with the operating achievement of the company. However, for the enterprises with more investment opportunities, board members’ shareholding pledges will increase their risk. During times of economic prosperity, controlling the act of the shareholders’ individual pledges has a positive relation with the company’s operating achievement; whereas during times of economic difficulty, the act of pledges appears to have a negative relation with the company’s operating achievement. Moreover, this research also showed that from the first year to the third year before the company crisis, there are no obvious effects; however, during the first year and third year of Return on Equity (ROE) and second year of accounts receivable collecting days, obvious impacts occur. This shows that as the crisis approaches the warning weakens. Most of the listed companies in Taiwan are still controlled by shareholders. Changes in the management of the company would benefit the listed companies in Taiwan in the area of information transparency, and lower the chances of unbalanced information which leads to lowering the rates of crises occurring. These changes include the establishment of independent board members and the appointing of professional managerial personnel – or others who have no beneficial relation with the company – to direct the company’s operational decisions and undertake supervision. In this way the capital market of Taiwan would be much more integrated in this area. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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