Building a Corporate Governance Index from the Perspectives of Ownership and Leadership for Firms in Taiwan
This paper tests the relationship between ownership/leadership structures and stock returns for firms listed in Taiwan. A "Governance Index" is built based on four different aspects of the company's governance structure: 1. CEO duality, 2. Size of the board of directors, 3. Managements' holdings and 4. Block shareholders' holding. This index is used as a proxy measure of the effectiveness of the corporate governance mechanism. We propose that firms under good governance should outperform those under poor governance. We find a striking relationship between our governance index and stock performance of firms. The results imply that our corporate governance index is successful in evaluating the effectiveness of the governance mechanism of firms in Taiwan. Copyright (c) 2007 The Authors; Journal compilation (c) 2007 Blackwell Publishing Ltd.
Year of publication: |
2007
|
---|---|
Authors: | Chen, Anlin ; Kao, Lanfeng ; Tsao, Meilan ; Wu, Chinshun |
Published in: |
Corporate Governance: An International Review. - Wiley Blackwell, ISSN 0964-8410. - Vol. 15.2007, 2, p. 251-261
|
Publisher: |
Wiley Blackwell |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Efficient learning under price limits: evidence from IPOs in Taiwan
Chen, Anlin, (2004)
-
Control or invest? Understanding the complex interests of managerial ownership
Chou, Shuching, (2007)
-
Efficient learning under price limits : evidence from IPOs in Taiwan
Chen, Anlin, (2004)
- More ...