Abstract
This study employs the data of twenty-seven banks listed on the Taiwan Stock Exchange from 2000–11 to examine the determinants of board structure, e.g., board size and the independent directors ratio. The evidence shows that bank size, the degree of revenue diversification, and the CEO’s shareholding are positively associated with the independent directors ratio. A higher outside block shareholding is correlated with a larger board size and a higher independent directors ratio. As the creditors’ stake decreases, a larger board and greater board independence are required to maintain internal corporate governance. Finally, banks with M&A activity tend to downsize their board sizes and reduce board independence in the subsequent period.
| Original language | English |
|---|---|
| Pages (from-to) | 2001-2017 |
| Number of pages | 17 |
| Journal | Emerging Markets Finance and Trade |
| Volume | 52 |
| Issue number | 9 |
| DOIs | |
| Publication status | Published - 2016 Sep 1 |
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All Science Journal Classification (ASJC) codes
- Finance
- Economics, Econometrics and Finance(all)
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Corporate Governance Reform, Board Structure, and Its Determinants in the Banking Industry—Evidence from Taiwan. / Lin, Kun Li; Chang, Yuan.
In: Emerging Markets Finance and Trade, Vol. 52, No. 9, 01.09.2016, p. 2001-2017.Research output: Contribution to journal › Article
TY - JOUR
T1 - Corporate Governance Reform, Board Structure, and Its Determinants in the Banking Industry—Evidence from Taiwan
AU - Lin, Kun Li
AU - Chang, Yuan
PY - 2016/9/1
Y1 - 2016/9/1
N2 - This study employs the data of twenty-seven banks listed on the Taiwan Stock Exchange from 2000–11 to examine the determinants of board structure, e.g., board size and the independent directors ratio. The evidence shows that bank size, the degree of revenue diversification, and the CEO’s shareholding are positively associated with the independent directors ratio. A higher outside block shareholding is correlated with a larger board size and a higher independent directors ratio. As the creditors’ stake decreases, a larger board and greater board independence are required to maintain internal corporate governance. Finally, banks with M&A activity tend to downsize their board sizes and reduce board independence in the subsequent period.
AB - This study employs the data of twenty-seven banks listed on the Taiwan Stock Exchange from 2000–11 to examine the determinants of board structure, e.g., board size and the independent directors ratio. The evidence shows that bank size, the degree of revenue diversification, and the CEO’s shareholding are positively associated with the independent directors ratio. A higher outside block shareholding is correlated with a larger board size and a higher independent directors ratio. As the creditors’ stake decreases, a larger board and greater board independence are required to maintain internal corporate governance. Finally, banks with M&A activity tend to downsize their board sizes and reduce board independence in the subsequent period.
UR - http://www.scopus.com/inward/record.url?scp=84947815411&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84947815411&partnerID=8YFLogxK
U2 - 10.1080/1540496X.2015.1098052
DO - 10.1080/1540496X.2015.1098052
M3 - Article
AN - SCOPUS:84947815411
VL - 52
SP - 2001
EP - 2017
JO - Emerging Markets Finance and Trade
JF - Emerging Markets Finance and Trade
SN - 1540-496X
IS - 9
ER -