| dc.description.abstract | This paper investigates the relationship among corporate governance, firm innovation, and firm performance using data from Taiwanese listed electronics companies. The firm-level innovation efficiency is estimated by the network slack-based model (SBM) and divided into two sub-stages: R&D and marketing. The results show that marketing efficiency has a positive effect on firm performance and mediates the relationship between institutional ownership and ROA as well as managers’ ownership and Tobin′s Q. There is a positive correlation between institutional ownership and marketing efficiency as well as ROA, which means that institutional ownership has a further positive impact on financial performance by promoting marketing efficiency. On the other hand, managers’ ownership has a negative impact on Tobin′s Q while a positive impact on marketing efficiency. Managers’ ownership also has a positive impact on firm value through the channel of marketing efficiency and slightly mitigates the agency problems.
Apart from this, this paper also verifies the non-linear relationship between ownership structure and firm performance. First, there is an ＂inverted U-shaped＂ curve relationship between large shareholders’ ownership and Tobin′s Q, which means that the higher percentage of large shareholders’ ownership will have better performance. However, when more than half (52.63%) of the shareholding is concentrated in the hands of minority shareholders, it is detrimental to the firm value. Second, there is a ＂U-shaped＂ curve relationship between managers’ ownership and ROA. When managers hold more shares, it has a negative impact on the firm performance. However, when their shareholding is above 31.27%, the impact has turned positive. | en_US |