After The Establishment Of The Independent Director System Of Corporate Governance And Its Performance Study

The beginning of the century brought the financial scandals of Enron,Worldcom,Zerox...etc., in the United States, shocking the American financial areas aswell as world society. In Asian countries, similar financial scandals have also beenoccurring, the companies had been drawing out their capital & assets by the bigshareholders, thus resulting in the companies bankruptcy. This has severely changedthe outlook upon Asian business on a global prospective. Organization of Economics& Cooperation Development (OECD), and related nations, realized the importanceof Corporate Governance which has been discussed & studied widely by all sectors.At the same time, Independent Director among Corporate Governance has beenexpected to monitor the company's operation, thus to reach to the objective ofprotecting the investors through professional & independent Directors in the board.The company operation is dependent on the board and its management, problemsusually occur due to the Information Asymmetry and the executives fail to thoroughlyact for the maximum benefit of shareholders and the company. This study censtructs amodel which indicates the impact of Corporate Governance and companyperformance after setting up an Independent Director system(Independent Directorprofessional, enthusiastic and independent) in the board to affect the CorporateGovernance(Board function, Shareholders protection, Information disclosure,Internal control and stackholder defense) based on the theory of separation ofownership & operation, agency theory, Corporate Governance theory.This research uses the questionnaires filled out by executives of public/OTCcompanies in Taiwan. There are in total 437 companies based on the informationprovided by the Market Observation Post System, and then collected 118 effectivesample from 556 direct mails. To testify the data by utilizing frequency distribution,reliability analysis, factor analysis, single factor variant analysis(One WayANOVA) and subsequent inspection, Pearson' s correlated analysis, regressionanalysis, canonical correlation analysis via the SPSS 12.0 statistic analysis software.The research result show: (1) There are positive relationships between theindependent directors and Corporate Governance (2) There are positive relationshipsbetween the independent directors and Corporate Performance (3) The independentdirectors via the Corporate Governance intermediary function influence the Corporate Performance (4)The different company's characteristic has the significant differencewith the Corporate Governance and the Corporate Performance.