This study mainly examines the association
between corporate governance and financial crises of firms cross-listed in
Taiwan. Using Logistic regression analysis, it takes Taiwan listed companies
and the firms cross-listed in Taiwan from 2009 to 2019 as the research objects,
to discuss corporate governance and corporate financial crisis and predict the
possibility of the company’s future financial crisis. The empirical results
reveal that the corporate governance mechanism of the firms cross-listed in
Taiwan had no significant correlation between the change of financial
controller and the future financial crisis of accounting firm and the
possibility, while the number of internal audit changes, the shareholding ratio
of major shareholders, and the size of the company were positively correlated
with the possibility of future financial crisis. The results of this audit
confirm that the corporate governance mechanism of the first listed company has
an important influence on the management and the operating performance of the
company. It may also serve as a basis for external investors and the government
to judge the financial soundness of the first listed company.
JEL classification numbers: G32.
governance, Financial crisis, Majority shareholding.