The relationship between corporate governance and firm productivity: Evidence from Taiwan's manufacturing firms

Min Hsien Chiang, Jia Hui Lin

Research output: Contribution to journalArticle

34 Citations (Scopus)

Abstract

This study analyses the relationship between ownership structure and board of director composition and their influences on the total factor productivity (TFP) of Taiwan's firms. The empirical results show that the curvilinear specification is better to capture the relationship between inside ownership and firm productivity. Meanwhile, the ownership structure in a firm indeed affects differences in TFP between conglomerate firms and non-conglomerate firms, high-tech firms and non-high-tech firms, and family-owned firms and non-family-owned firms. Additionally, a smaller board may be less encumbered by bureaucratic problems and more functional and CEO duality may be able to improve productivity. Furthermore, productivity deteriorates with increasing proportion of collateralised shares. More institutional holdings, however, are an effective way to alleviate the negative impact of collateralised shares on TFP.

Original languageEnglish
Pages (from-to)768-779
Number of pages12
JournalCorporate Governance: An International Review
Volume15
Issue number5
DOIs
Publication statusPublished - 2007 Oct

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

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