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Internal Corporate Governance Mechanisms: Evidence From Taiwan Electronic Companies

Author

Listed:
  • Chiaju Kuo
  • Yung-Yu Lai
  • Shaio Yan Huang
  • Chung-Jen Fu

Abstract

This study’s focuses on the effects of directors and employee stock bonus plans on electronic companies listed on the Taiwan Stock Exchange Corporation. In addition, the paper examines the appropriate internal corporate governance mechanisms for firms. The evidence shows firms with different scale measured by paid-in capital, need different corporate governance mechanisms. That is, raising directors’ ownership may enhance corporate governance mechanisms for small firms. Appointing independent directors voluntarily may enhance corporate governance mechanisms for middle size firms. Furthermore, large firms may enhance corporate governance mechanisms by raising all directors’ ownership, appointing independent directors voluntarily, or decreasing the proportion of managers serving concurrently as directors. Independent directors appear to have more effects on middle size and large firms.

Suggested Citation

  • Chiaju Kuo & Yung-Yu Lai & Shaio Yan Huang & Chung-Jen Fu, 2011. "Internal Corporate Governance Mechanisms: Evidence From Taiwan Electronic Companies," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 5(4), pages 57-74.
    • Handle: RePEc:ibf:ijbfre:v:5:y:2011:i:4:p:57-74
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    More about this item

    Keywords

    corporate governance; independent directors; independent supervisors;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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