Does the Firm with Well-Educational Level of Board Members Have Good Corporate Governance?

Shih-Wei Hung, Hsing-Chin Hsiao () and Jan-Chung Wang ()
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Shih-Wei Hung: College of Business, National Taipei University of Business Zhongzheng District, Taipei City 100, Taiwan, R. O. China
Hsing-Chin Hsiao: Department of Accounting Information, National Taipei University of Business Zhongzheng District, Taipei City 100, Taiwan, R. O. China
Jan-Chung Wang: Department of Money and Banking, National Kaohsiung University of Science and Technology, First Campus, Yanchao District, Kaohsiung City 82445, Taiwan, R. O. China

Review of Pacific Basin Financial Markets and Policies (RPBFMP), 2022, vol. 25, issue 03, 1-29

Abstract: This study examined the degree to which the educational level of directors affects corporate governance and firm value in firms. From the results, it has been found that the educational levels of directors are negatively related to corporate governance performance. On the other hand, firms with higher-educated directors have lower block shareholders’ holdings, which implies that the ownership right is not concentrated and block shareholders cannot effectively monitor the operation of the firm to avoid agency problems. Furthermore, a firm with higher educational levels of directors and stronger governance mechanisms is more significant to raise the firm value.

Keywords: Educational level; corporate governance; agency problem; firm value (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1142/S0219091522500230

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