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

Recalling since 1997 financial turmoil, many enterprise crisis warning awaken competent national authorities, the investing public realize that only sound corporate governance mechanism can sound capital market, enhance national competitiveness, they have suggested the importance in sound corporate governance mechanism. The small and medium-sized enterprises in Taiwan are subjects of the economic miracle, and they are mainly in the family-owned businesses. In addition, Taiwan's region with the rapid development of electronic industry becomes as a world of electronic goods factories in the recent years. Therefore this paper manages a testing in relevance between the structure characteristic of the board of directors in Taiwan electronic industries and the enterprises operating performance, the results described as follows:1. Board shareholding ratio and operating performance show significant positive correlation, the level of the board of trustees of the shareholding ratio is closely related with the company operating performance.2. The size of the board and operating performance show a positive correlation, which means the number of Board of Trustees and operating performance are related.3. The board in dependence and operating performance show a positive relationship, external independent directors of the board seats ratio and the level of operating performance show a positive correlation.4. Board of directors inside and operating performance appear positive correlation is because inside relative director and inside non-relative directors operating performance appear positive correlation. But it is apparent that inside relative's director and operating performance dependence , influence are not as good as the independent director.5. A concurrent chairman and general manager of the company shows a negative correlation of company achievement, on behalf of supervisors at the same time for business managers may not be helpful in terms of performance.This paper concludes that the board independence and corporate operating performance with significant relevance, therefore enterprises should set up the regulation to independent external board of directors seats and expanding to all companies, and should limit the minimum ratio of seats outside directors, so that the function of independent directors in the board of directors can give full play. Members of the Board should be increased their minimum amount in shareholding, so that the interests of their own interests could be associated with the enterprises.