| dc.description.abstract | With rising prominence of global corporate governance and corporate social responsibility (CSR), companies are paying increasing attention to the interests of all stakeholders, not just independent and institutional shareholders. Board diversity, independence, and size have become hot topics of research in Taiwan′s biotechnology and medical supplies industries.
This study utilizes data from the Taiwan Economic Journal database from 2006 to 2022, selecting 126 listed biotechnology and medical supplies companies and using the maximum likelihood estimation method to analyze a total of 1,322 observations. The main variables used include earnings per share, return on assets, stock return, Beta, stock price variance, and kurtosis to investigate the effects of board structure on corporate, financial, and risk performance.
The results show that increasing the proportion of independent directors significantly enhances the earnings per share and kurtosis but reduces Beta, indicating that independent directors generate a positive effect on bettering the decision-making process and reducing the systemic risk. However, the proportion of female directors has no significant impact on company risk and performance. Additionally, board size has a significant negative impact on the return on assets and stock return while reducing Beta. Therefore, we propose that increasing the proportion of independent directors and optimizing the board size can holistically enhance the company′s competitiveness. | en_US |