Financial crisis and the dynamics of corporate governance: Evidence from Taiwan's listed firms

This study complements the governance literature by investigating how Taiwan listed firms adjusted their governance structure to cope with the 2008 financial crisis. The results from the principal component analysis (PCA) suggest that there are significant differences in the factor scores, such as Board Power (of the Largest Shareholders), Information Transparency and Related Party Transactions; the changes in a firm's operating performance are associated with the changes in the scores of the governance factors during the financial crisis. The empirical evidence shows that Taiwan's listed firms adopted new governance structures to better cope with the challenges associated with the financial crisis in 2008. (C) 2014 Elsevier Inc. All rights reserved.