IDEAS home Printed from
   My bibliography  Save this article

An empirical study on the relationship between ownership and firm performance: Taiwan evidence


  • Yu-Chih Lin
  • Shaio Yan Huang
  • Shu-Chao Young


This study is to investigate the relationship between ownership and firm performance in the environment in which collateralising shares by directors and supervisors is a common practice. The sample includes firms that are listed on the Taiwan Stock Exchange from 1998 to 2002 except those in the financial industry. We find that a significant positive relationship (alignment) exists between ownership and firm performance (measured by ROA and ROE) when the net ownership is high. However, when the net ownership is low, the negative relationship (entrenchment) between ownership and performance is not significant. Besides, there is a significant negative relationship between collateralised shares of directors and supervisors and performance.

Suggested Citation

  • Yu-Chih Lin & Shaio Yan Huang & Shu-Chao Young, 2008. "An empirical study on the relationship between ownership and firm performance: Taiwan evidence," Afro-Asian Journal of Finance and Accounting, Inderscience Enterprises Ltd, vol. 1(1), pages 67-80.
  • Handle: RePEc:ids:afasfa:v:1:y:2008:i:1:p:67-80

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. repec:eee:reveco:v:51:y:2017:i:c:p:82-98 is not listed on IDEAS


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:afasfa:v:1:y:2008:i:1:p:67-80. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Darren Simpson). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.