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To Verify How Ownership structures, Board of Directors’ Characteristics, Related-Party Transactions upon the Operating Performance as Exemplified with Taiwan-Listed Info-Electronics Companies

Author

Listed:
  • Yu-Je Lee

    (Takming University of Science and Technology)

  • Mei-Fen Wu

    (Takming University of Science and Technology)

Abstract

The purpose of this study is to verify and understand how the corporate operating performance of Taiwan-listed info-electronics companies is affected by ownership structures, the board of directors’ characteristics, and related-party transactions. Convenience sampling was used to select elements of the population, made up of financial section chiefs or employees of higher levels at the afore-mentioned companies, for interviews based on statistics provided by the Taiwan Economic Journal (TEJ) database, namely the Return on Assets (ROA) and Earnings per Share (EPS). The linear Structural Equation Modelling (SEM) was used to verify the goodness-of-fit of the overall model, structural and measurement model. Findings from this study show that for Taiwan-listed info-electronics companies: (1) a sound ownership structure has an insignificantly positive influence on corporate governance; (2) the ideal characteristics of a board of directors have an insignificantly positive influence on corporate operating performance; (3) related- party transactions have a significantly negative influence on corporate operating performance.

Suggested Citation

  • Yu-Je Lee & Mei-Fen Wu, 2012. "To Verify How Ownership structures, Board of Directors’ Characteristics, Related-Party Transactions upon the Operating Performance as Exemplified with Taiwan-Listed Info-Electronics Companies," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 2(2), pages 143-158, April.
    • Handle: RePEc:hur:ijaraf:v:2:y:2012:i:2:p:143-158
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    References listed on IDEAS

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    More about this item

    Keywords

    Ownership structure; board of directors’ characteristics; related-party transactions;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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