Proceedings of the 6th Economic & Finance Conference, OECD Headquarters, Paris

CORPORATE GOVERNANCE, SHAREHOLDER PROPOSAL, AND CORPORATE PERFORMANCE –EVIDENCE FROM TAIWAN

MEI-HUNG HUANG, YIH JENG , SO-DE SHYU

Abstract:

In this research, through taking Tobin’s q and ROE as the performance proxy variables and using panel data model for the empirical research, we mainly studied the relationship between the corporate governance and the corporate performance of the listed companies in Taiwan stock market from year 2010 to 2012 with the shareholders exercising the proposal rights. The results revealed that the shareholding proportion of the institutional investors and the salary of the board members are in the significant negative correlation with the corporate performance of the listed companies at the stock market. The corporate governance index and the corporate performance are in significant negative correlation for the listed companies at the over-the-counter market. No matter if the listed company is at the stock market or at the over-the-counter market, the board size and the corporate performance are in significant negative correlation.

Keywords: Shareholder Proposal, Corporate Governance, Corporate Performance, Panel Data, Taiwan Stock Market

DOI: 10.20472/EFC.2016.006.009

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