How Does the Ratio and Part-Time Situation of Independent Directors Affect Firm Performance?

摘要

Firms with good corporate governance and enterprise have robust systems in order to enhance business performance. Government formulates laws for the purpose of preventing malpractice arising from lack of good corporate governance. This paper intends to examine how the ratio and part-time situation of independent directors affect firm performance. Empirical results show that ratio of independent directors seats has significant impact on non-electronic industry. As for the electronics industry, the more part-time situation of independent directors, the more detraction from the effectiveness of supervision, Non-electronic industry, on the contrary, the more independent directors part-time situation, the better corporate performance.