Independent Directors And Performance Of Listed Companies In Taiwan

This paper examines the role of independent directors in Taiwan listed companies from three aspects:the promulgation of the independent director system,the implementation of the audit committee system and the resignation of independent directors.According to the research results,there is an inverted U-shaped relationship between the proportion of independent directors and corporate performance in Taiwan listed companies.After the release of the independent director system,enterprises adjust the proportion of independent directors in the direction of improving enterprise performance.This shows that the higher the proportion of independent directors in the board of directors does not mean the better,and the market should also be considered in the specific implementation adaptability to changes in independent directors’supply and demand.In addition,by examining the professional independence of the audit committee,it is found that the professional competence of the audit committee is conducive to improving the financial quality information of the enterprise and further improving the performance level of the enterprise.At the same time,in the aspect of audit system implementation,it is also found that the gradual implementation of policies is conducive to smoothing the market expectation and reducing the market fluctuation.Finally,this paper studies the impact of independent directors’ resignation on corporate performance,and finds that independent directors with different backgrounds have different effects on corporate performance.For example,the resignation of independent directors of civil servants has a positive impact on corporate performance in the short term,but the long-term impact is negative.In addition,there are many factors affecting the resignation of independent directors,mainly involving the internal power balance and the interests of stakeholders.