TY  - JOUR
AB  - 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.
VL  - 8
IS  - 3
SN  - 1750-614X
DO  - 10.1108/CMS-08-2012-0118
UR  - https://doi.org/10.1108/CMS-08-2012-0118
AU  - Tsai Ming-Tien
AU  - Tung Wen-Hui
ED  - Eldon Y. Li
PY  - 2014
Y1  - 2014/01/01
TI  - Corporate governance, resources, FDI commitment and firm performance: Empirical analyses of Taiwanese high-tech firms
T2  - Chinese Management Studies
PB  - Emerald Group Publishing Limited
SP  - 313
EP  - 332
Y2  - 2024/05/08
ER  -