Chang, L., Hou, C. P., Lin, T. J., and Shu, W. H. 2014. The Relationship between Corporate Governance Structure and the Accessibility of Annual Shareholder Meetings. NTU Management Review, 24 (2): 213-248. https://doi.org/10.6226/NTURM2014.JUL.R10021
Li Chang, Associate Professor, Department of Business Administration, Shih Hsin University
Chi-Ping Hou, Associate Professor, Department of Accounting, China University of Technology
Tsui-Jung Lin, Associate Professor, Department of Banking and Finance, Chinese Culture University
Wen-Hsin Shu, Project Manager, Taiwan Mobile Co., Ltd.,
Abstract
The annual shareholder meeting is the only place that minority shareholders can exercise their own rights and communicate with directors and top managers. Therefore, the easy access to a shareholder meeting (e.g., a location is easy to reach) implies that the company has a better corporate governance structure. This paper examines the relationship between corporate governance and the accessibility of annual stockholder meetings. Our samples include firms listed on the Taiwan Stock Market from 2001 to 2007. The results show that both the proportion of outside directors and the percentage of institutional ownership affect the accessibility of the annual general meeting, and they are positively related. The degree of divergence between control rights and cash flow rights also affects the accessibility of the annual general meeting; however, they are negatively related.
Keywords
corporate governance structureannual stockholder meetingaccessibility