This paper investigates the relationship between key factors of board composition and firm performance.
We find that listed companies in Taiwan are suffered from the divergence between stock-control rights
and earnings-distribution rights, and the divergence of rights is negatively associated with firm
performance, as predicted. Besides, consistent with the viewpoint of Agency Theory that the controlling
interests of CEO may induce them to enhance company performance, we find that, CEO internalization is
significantly positively associated with firm performance. In addition, the results of the influence of board
structure document that, the more outside independent directors of a company, the better performance the
company has. Our findings provide strong support for the notion that corporate ownership structure and
board compositions are key factors in determining the corporate governance efficiency and play
important roles in enhancing firm performance.
Relation:
International Journal of Business and Finance Research 5(3), pp.15-27
