Corporate Governance Rating System in Taiwan with Multi-Criteria Decision Making Methods

Authors

  • Hsin An Su
  • Chin Hsien Hsieh
  • Chih Yang Chang National Taipei University of Technology
  • Feng Yi Lin National Taipei University of Technology

DOI:

https://doi.org/10.7903/cmr.5510

Abstract

Corporate governance has been the subject of extensive research due to high-profile scandals associated in well-known companies. Examining the existed governance rating system in Taiwan, we find that little attention has been paid to the role of corporate governance rating systems and the rating scores are poor predictors in predicting the multiple dimensions of firm performance. This study proposes to use multi-criteria decision-making methods, notably SAW, TOPSIS, and VIKOR, as refined scoring models for a corporate governance rating system. The results show that VIKOR, for its ability to obtain more precise scores, outperforms both the existing methodologies and the other two MCDM approaches. Keywords: Corporate Governance, Multi-Criteria Decision Method, Related-Party Transaction To cite this document: Hsin-An Su, Chin Hsien Hsieh, Chih-Yang Chang, and Fengyi Lin "Corporate Governance Rating System in Taiwan with Multi-Criteria Decision Making Methods", Contemporary Management Research, Vol.9, No.1, pp.3-12, 2013. Permanent link to this document http://dx.doi.org/10.7903/cmr.5510

Author Biographies

Hsin An Su

National Taipei University of Technology

Chin Hsien Hsieh

Chihlee Institute of Commerce

Chih Yang Chang, National Taipei University of Technology

National Taipei University of Technology

Feng Yi Lin, National Taipei University of Technology

National Taipei University of Technology

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Published

2013-03-31

How to Cite

Su, H. A., Hsieh, C. H., Chang, C. Y., & Lin, F. Y. (2013). Corporate Governance Rating System in Taiwan with Multi-Criteria Decision Making Methods. Contemporary Management Research, 9(1). https://doi.org/10.7903/cmr.5510

Issue

Section

Accounting and Finance