Ming-Tien Tsai and Wen-Hui Tung
– This study aims to explore the effects of corporate governance structure and resources on foreign direct investment (FDI) commitment and firm performance.
Abstract
Purpose
This study aims to explore the effects of corporate governance structure and resources on foreign direct investment (FDI) commitment and firm performance.
Design/methodology/approach
The data are collected from high-tech firms listed by the Taiwan Stock Exchange. All selected 137 firms have complete FDI and other required data during 2007-2009. The mean values of the variables during the three-year period were used for analysis.
Findings
The results indicate that both chief executive officer (CEO) duality and government shareholding affect a firm’s FDI; and the higher the management shareholding ratio, the lower the return on equity. Moreover, a large ownership of substantial shareholders can enhance a firm’s performance; and higher institutional ownership can lead to higher firm performance.
Research limitations/implications
This study analyses the limited data from 137 high-tech firms in Taiwan during the three-year period of 2007-2009. Further analyses of other industries, countries and time periods are needed to generalize the conclusions.
Practical implications
A firm with CEO duality should increase the ratio of government holding to mitigate the influence of CEO on FDI decisions. When a firm’s performance is poor, the ratio of managerial holdings should be reduced; conversely, the firm could attract more holdings from domestic securities and funds to improve performance.
Originality/value
This study provides guidelines for shareholders to analyze governance structure and formulate their investment strategies. Corporate policymakers may use these as the principles for designing a corporate governance structure that could engender optimal firm performance.
Details
Keywords
Jin-Li Hu, Ming-Chung Chang and Hui-Wen Tsay
The purpose of this paper is to explore Taiwan’s regional energy efficiency trend and complement the work of the total-factor energy efficiency (TFEE) index proposed by Hu and…
Abstract
Purpose
The purpose of this paper is to explore Taiwan’s regional energy efficiency trend and complement the work of the total-factor energy efficiency (TFEE) index proposed by Hu and Wang (2006). It further extends panel data stochastic frontier analysis (SFA) modeling for estimating disaggregate energy efficiency.
Design/methodology/approach
This paper applies the panel data stochastic production frontier to estimate the TFEE scores for 20 administrative regions in Taiwan over the period 2004-2015. The SFA models include five inputs (employed population, amount of productive electricity power consumed, amount of electricity consumed for household and non-household electric lighting, amount of gasoline sales, and amount of diesel sales) and one output (total real income in the base year of 2011).
Findings
This research concludes with three main findings: the inefficient administrative regions of Taiwan include mostly large industrial parks and the petrochemical industry cluster; the top five administrative regions with inefficient diesel use are mostly metropolitan areas that the concern of air pollution caused by diesel system arouses the awareness to use less diesel fuel; and the average TFEE score on household and non-household electric lighting is higher than the usage efficiency of productive electricity power, gasoline, and diesel, but there is still room for efficiency improvement.
Originality/value
Most administrative regions in Taiwan are not efficient in almost all kinds of energy use. The results show that the efficiencies of using productive electricity power, gasoline, and diesel need to be improved a lot more.