Journal of Applied Finance & Banking

Corporate Governance and Financial Crisis - A Empirical Study of Taiwanese Listed Companies

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• Abstract

   

  This study mainly examines the association between corporate governance and financial crises of firms cross-listed in Taiwan. Using Logistic regression analysis, it takes Taiwan listed companies and the firms cross-listed in Taiwan from 2009 to 2019 as the research objects, to discuss corporate governance and corporate financial crisis and predict the possibility of the company’s future financial crisis. The empirical results reveal that the corporate governance mechanism of the firms cross-listed in Taiwan had no significant correlation between the change of financial controller and the future financial crisis of accounting firm and the possibility, while the number of internal audit changes, the shareholding ratio of major shareholders, and the size of the company were positively correlated with the possibility of future financial crisis. The results of this audit confirm that the corporate governance mechanism of the first listed company has an important influence on the management and the operating performance of the company. It may also serve as a basis for external investors and the government to judge the financial soundness of the first listed company.

   

  JEL classification numbers: G32.

  Keywords: Corporate governance, Financial crisis, Majority shareholding.