Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwan
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwan
Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwan
Journal of Applied Finance cfc Banking, vol. 8, no. 2, 2018, 135-183 ISSN: 1792-6580 (print version), 1792-6599 (online)Scienpress Ltd. 2018Family Hol Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwanlding and Board Effectiveness on the Risk-taking of Financial Industry in China and TaiwanShu-Ling Lin1, Lu Jun2 and Jing-Lun Van'AbstractSince the financial crisis hit global financial markets and leads global economies into recession, people has had little confidence in the market. Il exposed the Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwanpoor mechanism of internal and external supervision, and the significance of corporate governance is getting noticed. Most enterprises in Taiwan and tFamily holding and board effectiveness on the risk-taking of financial industry in China and Taiwan
he Peoples' Republic of China are family holding businesses. This study involves the Taiwanese and Chinese financial industries and examines the influJournal of Applied Finance cfc Banking, vol. 8, no. 2, 2018, 135-183 ISSN: 1792-6580 (print version), 1792-6599 (online)Scienpress Ltd. 2018Family Hol Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwannegative correlation between family ownership and risk-taking. There is also a significant negative correlation between board effectiveness and risk-taking. Bank risk increases significantly in the pre-crisis period, in contrast to the post-crisis period. However, risk-taking of insurance and securi Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwanties increases significantly in the post-crisis, in contrast to the pre-crisis period. The improvements of board effectiveness in banking, insurance oFamily holding and board effectiveness on the risk-taking of financial industry in China and Taiwan
r securities are able to decrease financial risk-taking. In the post-crisis period, the banking in Taiwan and the Peoples’ Republic of China can reducJournal of Applied Finance cfc Banking, vol. 8, no. 2, 2018, 135-183 ISSN: 1792-6580 (print version), 1792-6599 (online)Scienpress Ltd. 2018Family Hol Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwanence of industry characteristics.' Corresponding author. Professor. Department of Information and Finance Management. College of Management. National Taipei University of Technology. Taiwan.■ PhD. Candidates. College of Management. National Taipei University of Technology, Taiwan.Master. Department Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwanof Business. National Taipei University of Technology, Taiwan.Article Info: Received'. November 27,2016. Revised: February 15, 2017Published online :Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwan
March 1. 2018Shu-Ling Lin et al.136JEL classification numbers: G32, G34Keywords: Family holding, Board effectiveness, Risk-taking, Corporate governancJournal of Applied Finance cfc Banking, vol. 8, no. 2, 2018, 135-183 ISSN: 1792-6580 (print version), 1792-6599 (online)Scienpress Ltd. 2018Family Hol Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwanand ATG occurs financial crisis. The global stock and the real estate markets confront collapse, and millions of people lose their work. Tn that condition, the evidence implicate that the inefficiency of corporate governance. More and more investors progressively recognize the importance of corporat Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwane governance, and push firms reform then governance mechanisms. Especially, the finance industry is the more special economies, must be more to strengFamily holding and board effectiveness on the risk-taking of financial industry in China and Taiwan
then the corporate governance and to carry out the risk management of financial institutions, and effective supervision and audit, in order to enhanceJournal of Applied Finance cfc Banking, vol. 8, no. 2, 2018, 135-183 ISSN: 1792-6580 (print version), 1792-6599 (online)Scienpress Ltd. 2018Family Hol Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwan organizational system to effectively manage activities of enterprises and organizations through legal checks and balances and controls design, in order to prevent drawbacks of coiporate law and to pursuit stable business operations development as the goal. In past ownership structure literature, Be Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwanrl and Means hypothesized the ownership separation that management and ownership should be represented by different persons [10]. However, in other stFamily holding and board effectiveness on the risk-taking of financial industry in China and Taiwan
udies showed that American corporate shareholder is not totally separated but concentrated in few family and rich investors [66], [54]. On the other hJournal of Applied Finance cfc Banking, vol. 8, no. 2, 2018, 135-183 ISSN: 1792-6580 (print version), 1792-6599 (online)Scienpress Ltd. 2018Family Hol Family holding and board effectiveness on the risk-taking of financial industry in China and TaiwanAsian countries and found over half of the corporates ownership is held by families and over two-thirds are owned by only one shareholder from family. In addition. Yeh et al. [79] studied publicly traded companies in Taiwan and found 76% are owned by the family business and the boards are highly con Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwantrolled by the family, which shows Taiwanese corporate ownership arc highly concentrated on family firms.Tn family holding business, members of boardFamily holding and board effectiveness on the risk-taking of financial industry in China and Taiwan
and appointments of higher order management will be influenced by affiliate consideration and represented by family members, which make the ownership Journal of Applied Finance cfc Banking, vol. 8, no. 2, 2018, 135-183 ISSN: 1792-6580 (print version), 1792-6599 (online)Scienpress Ltd. 2018Family Hol Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwanonsistent with corporate’s interest and to maximize the profits of corporate, they lend to cautiously make decisions in order to decrease corporate’s risk. However, if the family pul then interest before the corporate's interest, family members may make decisions according to their own benefits even Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwan violating corporate governance and exploiting corporate’s resource, increasing risk.Because of the above agency problem, the perfect corporate governFamily holding and board effectiveness on the risk-taking of financial industry in China and Taiwan
anceFamily Holding and Board Effectiveness on the Risk-taking of Financial Industry137mechanism is obviously more important. Independent directors canJournal of Applied Finance cfc Banking, vol. 8, no. 2, 2018, 135-183 ISSN: 1792-6580 (print version), 1792-6599 (online)Scienpress Ltd. 2018Family Hol Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwanerience to monitor and control the decisions about the company to prevent the huge losses caused by (he interest conflicts between (he company and the family. Therefore, through the supervision mechanism of independent directors and members of (he commit lee can protect the basic rights of sharehold Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwaners from management conflicts, which has established the confidence of investors, so that corporate governance can maximize lhe benefits.hl the past,Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwan
literature studies focused more on corporate governance. family linns, and business performance to examine whether corporate governance impacts corporJournal of Applied Finance cfc Banking, vol. 8, no. 2, 2018, 135-183 ISSN: 1792-6580 (print version), 1792-6599 (online)Scienpress Ltd. 2018Family Hol Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwanormance does not mean that the company's business is perfect. It is possible that financial institutions leveraged too much or no strict supervision, which resulting the excessive risk of the company closed down or financial crisis, making the public began to pay more attention to the company's risk Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwan-taking and control. However, there is little research on family ownership and risk-taking ill previous studies. Only Pathail [57] studied the effectFamily holding and board effectiveness on the risk-taking of financial industry in China and Taiwan
on the risk-taking of directors and managers in the banking industry, and found that directors and have significant positive relations with bank’s risJournal of Applied Finance cfc Banking, vol. 8, no. 2, 2018, 135-183 ISSN: 1792-6580 (print version), 1792-6599 (online)Scienpress Ltd. 2018Family Hol Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwandiscussing the family holding, board of directors’ effectiveness and risk-taking.After the financial crisis, the global economic was a downturn and financial institutions take excessive risks, but the company did not do well on risk control and the proper management supervision. causing the public c Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwanonfidence crisis toward financial institutions. Therefore, people began to raise awareness of risk and paid more attention to the issue of risk-takingFamily holding and board effectiveness on the risk-taking of financial industry in China and Taiwan
in order to avoid excessive risk of re-occurrence of the situation.Tn recent years, the financial industry has faced great transformation and changesJournal of Applied Finance cfc Banking, vol. 8, no. 2, 2018, 135-183 ISSN: 1792-6580 (print version), 1792-6599 (online)Scienpress Ltd. 2018Family Hol Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwank of banking industries: the financial industry is more competitive in liberalization and internationalization, and also reduce the autonomy of the banks; inter-bank funds exchanges faced great challenges under a high degree of financial product innovation. Since the firewall between banks and slock Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwan markets were removed, financial centers in every country arc being turned from financial intermediaries to financial markets but these financial instFamily holding and board effectiveness on the risk-taking of financial industry in China and Taiwan
itutions have serious business overlap with each other, which often breeds improper conflict of interest and the interests of the transfer. With long Journal of Applied Finance cfc Banking, vol. 8, no. 2, 2018, 135-183 ISSN: 1792-6580 (print version), 1792-6599 (online)Scienpress Ltd. 2018Family Hol Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwanets [21].Therefore, how to perfect the corporate governance mechanism while the risk isShu-Ling Lin eỉ al.138increasing, the board and the members of the commission at even' level have to ensure that the company grow steadily and allow investment to the public confidence in the financial institution Family holding and board effectiveness on the risk-taking of financial industry in China and Taiwans and to protect the power of the company's stakeholders, and effectively control the risk of commitment.There are three differences between in this pFamily holding and board effectiveness on the risk-taking of financial industry in China and Taiwan
aper: (1) In the past, most ownership structure and risk-taking researches focus on exploring the relationship between managers' shareholding and riskGọi ngay
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