研究期間：10208~10307;Literature about the structure of the corporate board has found that firm characteristics are systematically related to board size and the proportion of outside directors on the board. These characteristics include advice and resource needs of the firm, the benefits and costs of monitoring managers, CEO influence and the constraints on that influence. From these studies, we learn the theoretical foundation of the existence of the firm’s optimal (or target) board structure, as well as the empirical findings on how the optimal board structure differs because of different firm characteristics. The main purpose of this project is to test whether a firm’s board of directors will adjust toward the optimal structure and to understand the determinants of the adjustment speed. The adjustment of the board has the costs, but maintaining at the non-optimal board structure also has costs, which can be said as the benefits of the adjustment. The relative size of adjustment costs and benefits determines the speed of adjustment toward the optimal board structure. Thus, an analysis of the determinants of the adjustment speed is to examine the determinants of adjustment benefits and costs. The sample of this study will be the firms listed on the Taiwan Stock Exchange in 2011. By reviewing the annual reports of firms, I will track and record each firm’s board structure between 1996 and 2011, and construct a panel data set for board size and composition. A dynamic partial adjustment model is specified to test the hypotheses. Different estimation procedures, including difference-GMM, system-GMM, and corrected LSDV, are then used to estimate the model. Few studies in the literature addressing the adjustment speed of the board structure. This project is expected to provide academic findings and suggestions to businesses for their implement of board adjustments.
