| dc.description.abstract | The purpose of this study is to explore the corporate governance mechanism of Taiwanese listed companies in electronic industry and its connection to the credit risk. In this paper, we examine the TCRI substitution variables as credit risk, and prove the thesis whether the corporate governance has an impact on credit risk by analyzing 8 different factors, including the shareholder structure, board composition etc.
We target 4, 610 domestic listed companies in electronic industry from 2005 to 2011 and divided into 2 phases, before and after the financial crisis in 2008, for empirical study. The data analysis employed in this study includes the descriptive statistics, Pearson’s correlation, and Regression analysis, through SAS.
This research concludes the following points:
(1)On the shareholder structure: ＂Blockholder Ownership＂ has a significant positive correlation to the corporate credit risk, whereas ＂Managerial Ownership,＂ ＂Ownership of Domestic Institutional Investors＂ and ＂Ownership of Foreign Institutional Investors＂ have a significant negative correlation;
(2)On Board Composition: ＂Pledged Share Ratio of Directors and Supervisors＂ has a significant positive correlation to the corporate credit risk, whereas ＂Board Size＂ and ＂Number of Independent Director＂ have a significant negative correlation;
(3)＂Director Compensation＂ and ＂Number of CPA changes within 3 years＂ have positive influence on credit risk;
(4)After the sub-prime mortgage crisis, the impact of ＂Ownership of Foreign Institutional Investors＂ and ＂Board Size＂ become less significant. | en_US |