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Board, ownership and performance of banks with a dual board system: Evidence from Taiwan

Published online by Cambridge University Press:  02 February 2015

Chi-Jui Huang
Chi-Jui Huang*
Affiliation:
Assistant Professor, Department of Banking and Cooperative Management, National Taipei University, Taiwan
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Abstract

The influence of corporate governance on a firm's performance has recently been studied in industrial enterprises in developed countries, but not in services such as banks with a dual board system in Asia's newly-industrialized economies (NIEs). This research examines the effects of board structure and ownership on a bank's performance using a sample of 41 commercial banks in an Asian NIE (Taiwan). Results showed that board size, numbers of outside directors, and family-owned shares are positively associated with bank performance, whereas the number of supervisory directors has a negative influence on performance. The findings provide empirical support for corporate governance, which improves the performance of banks with a dual board system in Taiwan.

Keywords

dual boardsownershipfinancial performancecorporate governancesupervisory boardTaiwan
Type
Research Article
Information
Journal of Management & Organization , Volume 16 , Issue 2 , May 2010 , pp. 219 - 234
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2010

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