An Empirical Study Of The Relationship Between Characteristics Of Board Structure And Enterprise Operating Performance

The objective of corporate governance system is used for ensuring the investment fund of the shareholder to be recoverable and create the value of the company as well as to improve the operating performance of the company via through setting up proper inside and external mechanisms.A company's board of directors is the core of corporate self-governance mechanisms. This research is to study the linkage between the board structure of listed companies in Taiwan and enterprise operating performance.In addition,we try to inspect their relationship of operating performance and value of company among the variables such as board of directors structure to be used,enterprise structure,family-controlled,non-family controlled business characteristic.To study the function of the board of directors and attribute view of the structure form the managing system of the company to be set out,we quote the norm that director's functions and powers of company law of Taiwan as well as the decision of the board of directors and basis of supervising right.In conjunction with the implementation of independent director and supervisor system,the completed and detailed information on corporate directors and supervisors disclosed in the annul report and article 206 of Taiwan law is regarded as director's order of seats which the differentiation basis phased in proportion,and adopt the multiple linear regression model,piecewise linear regression model,take stochastic frontier such as technical efficiency weight model surmounting Translog cost function for medal function.We Probe the relationship between characteristic of board structure and the financial performance(ROA,ROE,MTBV ),economic efficiency(EFF ) of the listed companies of Taiwan.Our empirical result are summarized as following:The characteristic of board structure and operating performance has significant correlation,especially we find that the independent detectors of external and inside non-relative directors have positive significant influence of the financial performance and economic efficiency,therefore enterprise should set up the regulation to let inside directors,and external directors deal in the help of the performance to be greater for enterprises when it can monitor and balance each other on the policy-making power.To compare the family-controlled business and non-family-controlled business,we can find that demonstrate and show the difference no matter what enterprise operating performance parameter or the board structure in enterprises.In addition,it shows that it is a quite important parameter of influencing on the family-controlled enterprise's characteristic to study the characteristic and enterprise of board of directors for operating performance topic.